As beverages and alcohol stocks’ Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers, including Coca-Cola (NYSE:KO) 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 14 beverages and alcohol stocks we track reported a weaker Q4; on average, revenues were in line with analyst consensus estimates while next quarter’s revenue guidance was 20.2% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but beverages and alcohol stocks held their ground better than others, with share prices down 0.8% on average since the previous earnings results.
Coca-Cola (NYSE:KO)
A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.
Coca-Cola reported revenues of $10.95 billion, up 7.4% year on year, topping analyst expectations by 2.8%. It was a solid quarter for the company, with an impressive beat of analysts’ organic revenue growth estimates. This led to a revenue beat, and while operating margin missed, EPS was in line with analysts’ expectations. Looking ahead, guidance for 2024 EPS is also in line with expectations, showing that the company is staying on track.
The stock is up 1.1% since the results and currently trades at $60.34.
Is now the time to buy Coca-Cola? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $106.1 million, up 15.4% year on year, outperforming analyst expectations by 7%. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings and revenue estimates.
Vita Coco delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 10.5% since the results and currently trades at $24.78.
Is now the time to buy Vita Coco? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $393.7 million, down 12% year on year, falling short of analyst expectations by 4.8%. It was a weak quarter for the company, with a miss of analysts’ revenue and EPS estimates.
Boston Beer had the slowest revenue growth in the group. The stock is down 16% since the results and currently trades at $310.5.
Read our full analysis of Boston Beer’s results here.
Zevia PBC (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 PBC reported revenues of $37.79 million, up 6.9% year on year, surpassing analyst expectations by 1.2%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts’ expectations.
The stock is down 31.7% since the results and currently trades at $1.1.
Read our full, actionable report on Zevia PBC here, it’s free.
MGP Ingredients (NASDAQ:MGPI)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQGS:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $214.9 million, up 12.5% year on year, surpassing analyst expectations by 4.6%. It was a decent quarter for the company, with EPS and gross margin exceeding expectations. Its revenue also outperformed Wall Street’s estimates. In particular, the company’s premium branded spirits portfolio grew by an astonishing 50% year on year. On the other hand, its full-year revenue guidance missed analysts’ expectations.
MGP Ingredients had the weakest full-year guidance update among its peers. The stock is down 10.2% since the results and currently trades at $82.56.
Read our full, actionable report on MGP Ingredients here, it’s free.
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