Let’s dig into the relative performance of Monster (NASDAQ:MNST) and its peers as we unravel the now-completed Q1 beverages, alcohol, and tobacco earnings season.
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 rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. 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 15 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.5%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
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 $1.85 billion, down 2.3% year on year. This print fell short of analysts’ expectations by 6.3%. Overall, it was a slower quarter for the company with a slight miss of analysts’ EBITDA and EPS estimates.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “Our first quarter revenues were impacted by a number of headwinds including bottler/distributor ordering patterns, unfavorable foreign currency exchange rates in certain markets, adverse weather in certain geographies as well as overall global economic uncertainties. Despite these headwinds, net sales excluding the Alcohol Brands segment, on a foreign currency adjusted basis, increased 1.9 percent in the quarter.
Interestingly, the stock is up 3.6% since reporting and currently trades at $62.30.
Is now the time to buy Monster? 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 $453.9 million, up 6.5% year on year, outperforming analysts’ expectations by 4.1%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Boston Beer pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $245.52.
Is now the time to buy Boston Beer? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $2.30 billion, down 11.3% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates,
The stock is flat since the results and currently trades at $56.27.
Read our full analysis of Molson Coors’s results here.
MGP Ingredients (NASDAQ:MGPI)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $121.7 million, down 28.7% year on year. This number surpassed analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA and gross margin estimates.
MGP Ingredients pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 13% since reporting and currently trades at $33.27.
Read our full, actionable report on MGP Ingredients here, it’s free.
Coca-Cola (NYSE:KO)
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE:KO) is a storied beverage company best known for its flagship soda.
Coca-Cola reported revenues of $11.22 billion, flat year on year. This result beat analysts’ expectations by 0.6%. More broadly, it was a satisfactory quarter as it also produced a decent beat of analysts’ organic revenue estimates and EBITDA in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $71.53.
Read our full, actionable report on Coca-Cola here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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