Looking back on beverages, alcohol, and tobacco stocks’ Q4 earnings, we examine this quarter’s best and worst performers, 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 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 15 beverages, alcohol, and tobacco stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.6% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest 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 $2.74 billion, down 2% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and EBITDA estimates.
The stock is up 14.1% since reporting and currently trades at $60.97.
Is now the time to buy Molson Coors? Access our full analysis of the earnings results here, it’s free.
Best Q4: Anheuser-Busch (NYSE: BUD)
Born out of a complicated web of mergers and acquisitions, Anheuser-Busch InBev (NYSE: BUD) boasts a powerhouse beer portfolio of Budweiser, Stella Artois, Corona, and local favorites around the world.
Anheuser-Busch reported revenues of $14.84 billion, up 2.5% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $61.56.
Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.
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 $402.3 million, up 2.2% year on year, exceeding analysts’ expectations by 2.4%. Still, it was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Interestingly, the stock is up 2.4% since the results and currently trades at $239.84.
Read our full analysis of Boston Beer’s results here.
Zevia (NYSE: ZVIA)
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.
Zevia reported revenues of $39.46 million, up 4.4% year on year. This result met analysts’ expectations. However, it was a softer quarter as it produced full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
The stock is down 33.5% since reporting and currently trades at $2.16.
Read our full, actionable report on Zevia 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 $4.07 billion, up 5.2% year on year. This print topped analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also logged a narrow beat of analysts’ EBITDA estimates.
The stock is up 1.6% since reporting and currently trades at $34.66.
Read our full, actionable report on Keurig Dr Pepper here, it’s free.
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