Wrapping up Q2 earnings, we look at the numbers and key takeaways for the beverages and alcohol stocks, including Monster (NASDAQ:MNST) and its peers.
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.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, beverages and alcohol stocks have held steady amidst all this with share prices up 4.9% on average since the latest earnings results.
Monster (NASDAQ:MNST) Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Monster reported revenues of $1.90 billion, up 2.5% year on year. This print fell short of analysts’ expectations by 5.6%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “The energy drink category in the United States and in certain other countries experienced lower growth rates in the second quarter. Retailers have reported a reduction in convenience store foot traffic and we have seen a shift at retail towards more mass and dollar channels. Other beverage and consumer packaged product companies have also seen a tighter consumer spending environment and weaker demand in the quarter.
Monster delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 5.9% since reporting and currently trades at $47.59.
Is now the time to buy Monster? Find out by reading the original article on StockStory, it’s free.
Best Q2: Celsius (NASDAQ:CELH) With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $402 million, up 23.4% year on year, outperforming analysts’ expectations by 2.4%. It was a very strong quarter for the company with a solid beat of analysts’ gross margin estimates.
Celsius achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4% since reporting. It currently trades at $39.69.
Slowest Q2: 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 estimates.
Interestingly, the stock is up 3.3% since the results and currently trades at $279.63.
Coca-Cola (NYSE:KO) A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.
Coca-Cola reported revenues of $12.31 billion, up 2.9% year on year, surpassing analysts’ expectations by 4.8%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates.
Coca-Cola pulled off the biggest analyst estimates beat among its peers. The stock is up 10.5% since reporting and currently trades at $71.56.
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, surpassing analysts’ expectations by 2.2%. Taking a step back, it was a strong quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 4.7% since reporting and currently trades at $53.55.
This content was originally published on Stock Story
