Let’s dig into the relative performance of Keurig Dr Pepper (NASDAQ: KDP) 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 1.8% on average since the latest earnings results.
Best Q1: Keurig Dr Pepper (NASDAQ: KDP)
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Keurig Dr Pepper reported revenues of $3.64 billion, up 4.8% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $34.
Is now the time to buy Keurig Dr Pepper? Access our full analysis of the earnings results here, it’s free.
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 $13.63 billion, down 6.3% year on year, falling short of analysts’ expectations by 1.3%. The business performed better than its peers, but it was unfortunately a softer quarter with a significant miss of analysts’ EPS estimates.
The market seems content with the results as the stock is up 3% since reporting. It currently trades at $67.45.
Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $329.3 million, down 7.4% year on year, falling short of analysts’ expectations by 3.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 8.6% since the results and currently trades at $36.86.
Read our full analysis of Celsius’s results here.
Philip Morris (NYSE: PM)
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Philip Morris reported revenues of $9.30 billion, up 5.8% year on year. This result surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.
The stock is up 3.7% since reporting and currently trades at $170.05.
Read our full, actionable report on Philip Morris here, it’s free.
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 print beat analysts’ expectations by 3.5%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA and gross margin estimates.
MGP Ingredients delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 12.1% since reporting and currently trades at $33.
Read our full, actionable report on MGP Ingredients here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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