Unpacking Q2 Earnings: Coca-Cola (NYSE:KO) In The Context Of Other Beverages and Alcohol Stocks

Looking back on beverages and alcohol stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Coca-Cola (NYSE:KO) 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 12 beverages and alcohol stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, beverages and alcohol stocks have held steady amidst all this with share prices up 2.8% on average since the latest earnings results.

Coca-Cola (NYSE:KO)

A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.

Coca-Cola reported revenues of $12.31 billion, up 2.9% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates and a narrow beat of analysts’ operating margin estimates.

Coca-Cola achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 9.7% since reporting and currently trades at $71.06.

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

Best Q2: 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%. It was a very strong quarter for the company with a solid beat of analysts’ gross margin estimates.

Celsius pulled off 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 22.7% since reporting. It currently trades at $31.96.

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

Slowest Q2: 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 weak quarter for the company with a miss of analysts’ earnings estimates.

As expected, the stock is down 4% since the results and currently trades at $260.05.

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

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, surpassing analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with a decent beat of analysts’ earnings estimates.

The stock is up 9.1% since reporting and currently trades at $55.77.

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

Zevia PBC (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 PBC reported revenues of $40.43 million, down 4.3% year on year, surpassing analysts’ expectations by 3.8%. Zooming out, it was a weak quarter for the company with a miss of analysts’ EPS estimates.

Zevia PBC pulled off the highest full-year guidance raise among its peers. The stock is up 13.3% since reporting and currently trades at $1.02.

Read our full, actionable report on Zevia PBC here, it’s free.

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