As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Monster (NASDAQ: MNST) 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 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average 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 $2.11 billion, up 11.1% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Hilton H. Schlosberg, Chief Executive Officer, said, “We achieved record net sales for the second quarter, exceeding the $2.0 billion mark for the first time, underscoring the strength of our brands, talent of our team, and continued appeal of our products around the world. The quarter’s performance also reflects the success of our product innovations, which are resonating strongly with consumers.
Interestingly, the stock is up 2.6% since reporting and currently trades at $62.41.
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 $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 46.1% since reporting. It currently trades at $62.60.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Tilray (NASDAQ: TLRY)
Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.
Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin and EPS estimates.
Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 98.1% since the results and currently trades at $1.38.
Read our full analysis of Tilray’s results here.
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 $587.9 million, up 1.5% year on year. This print was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
The stock is up 9.5% since reporting and currently trades at $221.09.
Read our full, actionable report on Boston Beer here, it’s free.
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 $44.52 million, up 10.1% year on year. This number topped analysts’ expectations by 6.6%. It was a stunning quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is down 20.3% since reporting and currently trades at $2.74.
Read our full, actionable report on Zevia here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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