As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beverages and alcohol stocks, starting with Anheuser-Busch (NYSE:BUD).
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 12 beverages and alcohol stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Thankfully, beverages and alcohol stocks have been resilient with share prices up 5.7% on average since the latest earnings results.
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 $15.33 billion, up 1.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 9.2% since reporting and currently trades at $64.98.
Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $402 million, up 23.4% year on year, outperforming analysts’ expectations by 2.4%. The business had a very strong quarter with a solid beat of analysts’ gross margin estimates. Operating income and EPS also blew past analysts' expectations.
Celsius pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $33.30.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $579.1 million, down 4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
The stock is flat since the results and currently trades at $270.92.
Read our full analysis of Boston Beer’s results here.
PepsiCo (NASDAQ:PEP)
With a history that goes back more than a century, PepsiCo (NASDAQ:PEP) is a household name in food and beverages today and best known for its flagship soda.
PepsiCo reported revenues of $22.5 billion, flat year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it logged a miss of analysts’ organic revenue growth estimates and underwhelming earnings guidance for the full year.
The stock is up 8.3% since reporting and currently trades at $177.29.
Read our full, actionable report on PepsiCo here, it’s free.
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 $144.1 million, up 3.2% year on year. This print was in line with analysts’ expectations. It was a very strong quarter as it also put up an impressive beat of analysts’ earnings estimates.
Vita Coco had the weakest full-year guidance update among its peers. The stock is up 10.9% since reporting and currently trades at $27.47.
Read our full, actionable report on Vita Coco here, it’s free.
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