Let’s dig into the relative performance of Brown-Forman (NYSE:BF.B) and its peers as we unravel the now-completed Q4 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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.6% below.
While some beverages, alcohol, and tobacco stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.
Weakest Q4: Brown-Forman (NYSE:BF.B)
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Brown-Forman reported revenues of $1.07 billion, down 1.1% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ organic revenue and adjusted operating income estimates.
Brown-Forman delivered the weakest performance against analyst estimates of the whole group. The stock is down 42% since reporting and currently trades at $35.24.
Is now the time to buy Brown-Forman? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $14.84 billion, up 2.5% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 13.5% since reporting. It currently trades at $62.15.
Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.
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 $402.3 million, up 2.2% year on year, exceeding analysts’ expectations by 2.4%. Still, it was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 2.4% since the results and currently trades at $228.70.
Read our full analysis of Boston Beer’s results here.
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 $1.81 billion, up 4.7% year on year. This number topped analysts’ expectations by 0.7%. However, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
The stock is up 5.4% since reporting and currently trades at $54.68.
Read our full, actionable report on Monster here, it’s free.
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 $332.2 million, down 4.4% year on year. This result beat analysts’ expectations by 2.7%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is up 5.6% since reporting and currently trades at $26.95.
Read our full, actionable report on Celsius here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.