The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages and alcohol stocks fared in Q2, starting with MGP Ingredients (NASDAQ:MGPI).
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 12 beverages and alcohol stocks we track reported a mixed Q2. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 13.1% below.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, beverages and alcohol stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
MGP Ingredients (NASDAQ:MGPI) Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQGS:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $190.8 million, down 8.7% year on year. This print was in line with analysts' expectations, and overall, it was a decent quarter for the company with a solid beat of analysts' gross margin estimates but full-year revenue guidance missing analysts' expectations.
MGP Ingredients delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 1.2% since reporting and currently trades at $82.40.
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Best Q2: Molson Coors (NYSE:NYSE:TAP) Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Molson Coors reported revenues of $3.25 billion, flat year on year, outperforming analysts' expectations by 2.2%. It was a strong quarter for the company with a decent beat of analysts' gross margin and earnings estimates.
The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $52.98.
Boston Beer (NYSE:NYSE:SAM) Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $579.1 million, down 4% year on year, falling short of analysts' expectations by 3.1%. It was a weak quarter for the company with a miss of analysts' earnings and gross margin estimates.
The stock is flat since the results and currently trades at $271.24.
Keurig Dr Pepper (NASDAQ:KDP) Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.
Keurig Dr Pepper reported revenues of $3.92 billion, up 3.5% year on year, in line with analysts' expectations. Overall, it was a mixed quarter for the company with a narrow beat of analysts' earnings estimates but a miss of analysts' gross margin estimates.
The stock is up 4.4% since reporting and currently trades at $34.23.
Constellation Brands (NYSE:NYSE:STZ) With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Constellation Brands reported revenues of $2.66 billion, up 5.8% year on year, in line with analysts' expectations. Zooming out, it was a solid quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts' gross margin estimates.
The stock is down 7.7% since reporting and currently trades at $238.80.
This content was originally published on Stock Story
