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 Q1. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Zevia NYSE:ZVIA.
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 13 beverages, alcohol, and tobacco stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 3% below.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
Zevia 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 reported revenues of $46.09 million, up 21.2% year on year. This print exceeded analysts’ expectations by 12.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Interestingly, the stock is up 28.7% since reporting and currently trades at $1.53.
Best Q1: Vita Coco NASDAQ:COCO
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company NASDAQ:COCO offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $179.8 million, up 37.3% year on year, outperforming analysts’ expectations by 20.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.
Vita Coco scored the biggest analyst estimate beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 41.9% since reporting. It currently trades at $73.28.
Weakest 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 $433.9 million, down 4.4% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Boston Beer delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22% since the results and currently trades at $184.97.
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 $782.6 million, up 138% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA and EPS estimates.
Celsius achieved the fastest revenue growth among its peers. The stock is down 8.6% since reporting and currently trades at $30.00.
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 $2.35 billion, up 26.9% year on year. This result surpassed analysts’ expectations by 9.3%. It was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is up 26.8% since reporting and currently trades at $96.37.