Looking back on beverages and alcohol stocks' Q2 earnings, we examine this quarter's best and worst performers, including Coca-Cola (NYSE:KO) and its peers.
The beverages and alcohol category encompasses companies engaged in the production, distribution, and sale of refreshments like beer, wine, and spirits, along with soft drinks, juices, and bottled water. 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. The industry is highly competitive, with a diverse range of products from large multinational corporations, niche brands, and startups vying for market share. It's also subject to varying degrees of government regulation and taxation, especially for alcoholic beverages.
The 14 beverages and alcohol stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 1.1% while next quarter's revenue guidance was 3.9% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but beverages and alcohol stocks held their ground better than others, with the share prices up 0.4% 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 $11.97 billion, up 5.9% year on year, topping analyst expectations by 1.8%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.
The stock is down 3.7% since the results and currently trades at $59.96.
Is now the time to buy Coca-Cola? 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 $384.8 million, up 104% year on year, outperforming analyst expectations by 9.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 1.6% since the results and currently trades at $59.97.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $102.5 million, down 5.2% year on year, falling short of analyst expectations by 1%. It was a mixed quarter for the company, with gross margin exceeding expectations. On the other hand, its revenue, operating margin, and EPS missed analysts' estimates, driven by worse-than-expected sales volume declines (3.4% decline vs 2.8% projected decline by Wall Street).
Duckhorn had the slowest revenue growth and weakest full-year guidance update in the group. The stock is down 15.3% since the results and currently trades at $8.65.
Read our full analysis of Duckhorn'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 $23.45 billion, up 6.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an impressive beat of analysts' earnings guidance for the full year. On the other hand, the year on year volume decline was greater than expectations.
The stock is up 3.1% since the results and currently trades at $166.44.
Read our full, actionable report on PepsiCo here, it's free.
Monster (NASDAQ:MNST)
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Monster reported revenues of $1.86 billion, up 14.3% year on year, falling short of analyst expectations by 0.6%. It was a slower quarter for the company, with a miss of analysts' revenue estimates.
The stock is up 8.8% since the results and currently trades at $57.3.
Read our full, actionable report on Monster here, it's free.
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The author has no position in any of the stocks mentioned