Unpacking Q4 Earnings: Brown-Forman (NYSE:BF.B) In The Context Of Other Beverages and Alcohol Stocks

Looking back on beverages and alcohol stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Brown-Forman (NYSE:BF.B) and its peers.

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 explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. 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 14 beverages and alcohol stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, beverages and alcohol stocks have held steady amidst all this with average share prices relatively unchanged 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 miss of analysts’ organic revenue growth estimates

Unsurprisingly, the stock is down 24.1% since reporting and currently trades at $46.08.

Is now the time to buy Brown-Forman? Access our full analysis of the earnings results here, it’s free.

Best Q4: 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 $402 million, up 23.4% year on year, outperforming analysts’ expectations by 2.4%. The business had a very strong quarter with a solid beat of analysts’ gross margin estimates.

Celsius delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 20.4% since reporting. It currently trades at $32.91.

Is now the time to buy Celsius? 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 $579.1 million, down 4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

The stock is flat since the results and currently trades at $269.79.

Read our full analysis of Boston Beer’s results here.

Constellation Brands (NYSE:STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $2.66 billion, up 5.8% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also produced optimistic earnings guidance for the full year and a decent beat of analysts’ gross margin estimates.

The stock is down 2.8% since reporting and currently trades at $251.51.

Read our full, actionable report on Constellation Brands here, it’s free.

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 $3.25 billion, flat year on year. This print topped analysts’ expectations by 2.2%. It was a strong quarter as it also logged a decent beat of analysts’ gross margin and earnings estimates.

The stock is up 6.4% since reporting and currently trades at $54.39.

Read our full, actionable report on Molson Coors here, it’s free.

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