Let’s dig into the relative performance of Brown-Forman (NYSE:BF.B) and its peers as we unravel the now-completed Q4 beverages and alcohol earnings season.
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 14 beverages and alcohol stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, beverages and alcohol stocks have held steady amidst all this with share prices up 2% on average since the latest earnings results.
Weakest Q4: Brown-Forman (NYSE:BF.B) Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Brown-Forman reported revenues of $1.07 billion, down 1.1% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a weak quarter for the company with a miss of analysts’ organic revenue growth and earnings estimates.
Unsurprisingly, the stock is down 25.6% since reporting and currently trades at $45.18.
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Best Q4: 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 and a decent beat of analysts’ earnings estimates.
Celsius scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $41.75.
Boston Beer (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 $271.67.
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%. More broadly, it was a strong quarter for the company with a decent beat of analysts’ gross margin and earnings estimates.
The stock is up 2.8% since reporting and currently trades at $52.58.
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%. Revenue aside, 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 achieved the biggest analyst estimates beat among its peers. The stock is up 6.2% since reporting and currently trades at $68.77.
This content was originally published on Stock Story
