As the Q2 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the beverages and alcohol industry, including Molson Coors (NYSE:TAP) 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 an ok Q2; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 13.1% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance due to mixed inflation data, and beverages and alcohol stocks have held roughly steady amidst all this, with share prices up 0.1% on average since the previous earnings results.
Molson Coors (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, exceeding analysts' expectations by 2.2%. Overall, it was a strong quarter for the company with a decent beat of analysts' gross margin and earnings estimates.
The stock is up 3.6% since reporting and currently trades at $52.98.
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Best Q2: 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, outperforming analysts' expectations by 4.8%. It was a very strong quarter for the company with an impressive beat of analysts' organic revenue growth estimates and a narrow beat of analysts' earnings estimates.
Coca-Cola delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $68.79.
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 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. Zooming out, 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.
Vita Coco (NASDAQ:COCO) Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $144.1 million, up 3.2% year on year, in line with analysts' expectations. Zooming out, it was a decent quarter for the company with an impressive beat of analysts' gross margin estimates but full-year revenue guidance missing analysts' expectations.
Vita Coco had the weakest full-year guidance update among its peers. The stock is up 3.3% since reporting and currently trades at $25.59.
This content was originally published on Stock Story
