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Q1 Rundown: Coca-Cola (NYSE:KO) Vs Other Beverages and Alcohol Stocks


Petr Huřťák /
2024/07/01 5:22 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Coca-Cola (NYSE:KO) and the best and worst performers in the beverages and alcohol industry.

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.

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, topping analysts' expectations by 2.4%. It was a decent quarter for the company, with an impressive beat of analysts' organic revenue growth estimates but a miss of analysts' operating margin estimates.

Coca-Cola Total Revenue

The stock is up 2.7% since the results and currently trades at $63.7.

Is now the time to buy Coca-Cola? Access our full analysis of the earnings results 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' revenue and earnings estimates.

Boston Beer Total Revenue

The stock is up 5.3% since the results and currently trades at $302.36.

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.

Zevia PBC had the weakest full-year guidance update in the group. The stock is down 22.7% since the results and currently trades at $0.81.

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' earnings estimates.

The stock is down 10.2% since the results and currently trades at $6.99.

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

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 $2.60 billion, up 10.7% year on year, surpassing analysts' expectations by 3.7%. It was a very strong quarter for the company, with a solid beat of analysts' revenue and earnings estimates.

Molson Coors achieved the biggest analyst estimates beat among its peers. The stock is down 20.3% since the results and currently trades at $50.63.

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

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