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Spotting Winners: MGP Ingredients (NASDAQ:MGPI) And Beverages and Alcohol Stocks In Q1


Radek Strnad /
2024/06/27 5:10 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at MGP Ingredients (NASDAQ:MGPI) 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 13 beverages and alcohol stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and beverages and alcohol stocks have had a rough stretch, with share prices down 6.3% on average since the previous earnings results.

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 $170.6 million, down 15.1% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with a decent beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

MGP Ingredients Total Revenue

MGP Ingredients delivered the slowest revenue growth of the whole group. The stock is down 9.1% since the results and currently trades at $71.27.

Read our full report on MGP Ingredients here, it's free.

Best Q1: 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 $426.1 million, up 3.9% year on year, outperforming analysts' expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Boston Beer Total Revenue

The stock is up 5.7% since the results and currently trades at $303.5.

Is now the time to buy Boston Beer? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $38.8 million, down 10.4% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' operating margin estimates.

Zevia PBC had the weakest full-year guidance update in the group. The stock is down 29% since the results and currently trades at $0.75.

Read our full analysis of Zevia PBC's results here.

Duckhorn (NYSE:NAPA)

With many of their grapes sourced from the famous Napa Valley region of California, The Duckhorn Portfolio (NYSE:NAPA) is a producer of premium wines and known for its Merlot and other Bordeaux varietals.

Duckhorn reported revenues of $92.53 million, up 1.4% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

The stock is down 10.1% since the results and currently trades at $7.

Read our full, actionable report on Duckhorn here, it's free.

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 $3.47 billion, up 3.4% year on year, surpassing analysts' expectations by 1.6%. It was a solid quarter for the company, with a decent beat of analysts' gross margin and earnings estimates.

The stock is up 6.7% since the results and currently trades at $34.52.

Read our full, actionable report on Keurig Dr Pepper here, it's free.

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