As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Monster (NASDAQ: MNST).
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 1.6% 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 1.5% 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 $1.81 billion, up 4.7% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “We recorded strong operating results on an adjusted basis in the 2024 fourth quarter and for the 2024 full year.
Interestingly, the stock is up 11.4% since reporting and currently trades at $57.80.
Is now the time to buy Monster? 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 12.3% since reporting. It currently trades at $61.52.
Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: 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.
The stock is flat since the results and currently trades at $232.71.
Read our full analysis of Boston Beer’s results here.
Altria (NYSE: MO)
Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.
Altria reported revenues of $5.11 billion, up 1.6% year on year. This number surpassed analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
The stock is up 8% since reporting and currently trades at $56.85.
Read our full, actionable report on Altria here, it’s free.
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 $27.78 billion, flat year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.
The stock is down 3% since reporting and currently trades at $145.90.
Read our full, actionable report on PepsiCo here, it’s free.
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