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Beverages and Alcohol Stocks Q1 In Review: Duckhorn (NYSE:NAPA) Vs Peers


Jabin Bastian /
2024/07/05 6:24 am EDT

As the Q1 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 Duckhorn (NYSE:NAPA) 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 solid Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and beverages and alcohol stocks have had a rough stretch, with share prices down 7.5% on average since the previous earnings results.

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.

“Our teams continued to execute against a challenging industry backdrop,” said Deirdre Mahlan, President, CEO and Chairperson.

Duckhorn Total Revenue

The stock is down 9.7% since the results and currently trades at $7.03.

Read our full report on Duckhorn 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 an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.

Boston Beer Total Revenue

The stock is up 3.2% since the results and currently trades at $296.44.

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' earnings estimates.

Zevia PBC had the weakest full-year guidance update in the group. The stock is down 35.8% since the results and currently trades at $0.67.

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

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 $14.55 billion, up 2.3% year on year, surpassing analysts' expectations by 1.3%. It was a solid quarter for the company. Anheuser-Busch beat analysts' adjusted EBITDA and EPS expectations.

The stock is down 0.9% since the results and currently trades at $59.99.

Read our full, actionable report on Anheuser-Busch 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' earnings estimates and a decent beat of analysts' gross margin estimates.

Molson Coors scored 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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