Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Brown-Forman (NYSE: BF.B) and the best and worst performers in the beverages, alcohol, and tobacco industry.
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 rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. 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 16 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results.
Weakest Q1: 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 $894 million, down 7.3% year on year. This print fell short of analysts’ expectations by 7.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ organic revenue and EBITDA estimates.
“Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team,” said Lawson Whiting, Brown-Forman’s President and Chief Executive Officer.
Brown-Forman delivered the weakest performance against analyst estimates of the whole group. The stock is down 16% since reporting and currently trades at $27.89.
Read our full report on Brown-Forman here, it’s free.
Best Q1: 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 $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Celsius achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 32.8% since reporting. It currently trades at $56.90.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.
Tilray (NASDAQ: TLRY)
Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.
Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin and EPS estimates.
Interestingly, the stock is up 161% since the results and currently trades at $1.82.
Read our full analysis of Tilray’s results here.
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 $3.20 billion, down 1.6% year on year. This print surpassed analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is down 4.9% since reporting and currently trades at $46.24.
Read our full, actionable report on Molson Coors here, it’s free.
Keurig Dr Pepper (NASDAQ: KDP)
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Keurig Dr Pepper reported revenues of $4.16 billion, up 6.1% year on year. This number beat analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
The stock is down 23.2% since reporting and currently trades at $25.72.
Read our full, actionable report on Keurig Dr Pepper here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
