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Beverages and Alcohol Stocks Q4 In Review: Brown-Forman (NYSE:BF.B) Vs Peers


Radek Strnad /
2024/07/09 3:30 am EDT

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the beverages and alcohol industry, including Brown-Forman (NYSE:BF.B) 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 decent Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and beverages and alcohol stocks have had a rough stretch, with share prices down 9.7% on average since the previous 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, falling short of analysts' expectations by 4.5%. It was a weak quarter for the company, with a miss of analysts' organic revenue growth and earnings estimates.

Brown-Forman Total Revenue

The stock is down 30% since the results and currently trades at $42.5.

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

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

Boston Beer Total Revenue

The stock is up 6.2% since the results and currently trades at $305.

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

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' earnings estimates.

Zevia PBC had the weakest full-year guidance update in the group. The stock is down 41.4% since the results and currently trades at $0.62.

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 weaker quarter for the company, with a miss of analysts' earnings estimates and underwhelming earnings guidance for the full year.

The stock is down 13% since the results and currently trades at $6.77.

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

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 $11.23 billion, up 2.5% year on year, surpassing analysts' expectations by 2.4%. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' gross margin estimates.

The stock is up 1.8% since the results and currently trades at $63.15.

Read our full, actionable report on Coca-Cola here, it's free.

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