A Look Back at Beverages and Alcohol Stocks' Q3 Earnings: Duckhorn (NYSE:NAPA) Vs The Rest Of The Pack
Looking back on beverages and alcohol stocks' Q3 earnings, we examine this quarter's best and worst performers, including Duckhorn (NYSE:NAPA) and its peers.
The beverages and alcohol category encompasses companies engaged in the production, distribution, and sale of refreshments like beer, wine, and spirits, along with soft drinks, juices, and bottled water. 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. The industry is highly competitive, with a diverse range of products from large multinational corporations, niche brands, and startups vying for market share. It's also subject to varying degrees of government regulation and taxation, especially for alcoholic beverages.
The 14 beverages and alcohol stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 1.1% while next quarter's revenue guidance was 3.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but beverages and alcohol stocks held their ground better than others, with the share prices up 2.7% on average since the previous earnings results.
Duckhorn (NYSE:NAPA)
With many of their grapes sourced from the famous Napa Valley region of California, The Duckhorn Portfolio (NYSE:NAPA) is a producer of premium wines and known for its Merlot and other Bordeaux varietals.
Duckhorn reported revenues of $102.5 million, down 5.2% year on year, falling short of analyst expectations by 1%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
Deirdre Mahlan, Interim President, Chief Executive Officer and Chairperson, commented, “We delivered a quarter at the high end of our expectations as we lapped an unseasonably strong first quarter in the prior year. In addition, we generated 90 bps of adjusted EBITDA margin expansion on less discounting and a focus on cost management.”
Duckhorn delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The stock is down 1.8% since the results and currently trades at $10.03.
Read our full report on Duckhorn here, it's free.
Best Q3: 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 $384.8 million, outperforming analyst expectations by 9.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Celsius scored the biggest analyst estimates beat among its peers. The stock is up 1.4% since the results and currently trades at $59.88.
Is now the time to buy Celsius? 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 $15.57 billion, up 3.2% year on year, falling short of analyst expectations by 0.9%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
The stock is up 21.4% since the results and currently trades at $65.62.
Read our full analysis of Anheuser-Busch'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 $3.30 billion, up 12.4% year on year, surpassing analyst expectations by 2%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates.
The stock is up 8.6% since the results and currently trades at $63.2.
Read our full, actionable report on Molson Coors here, it's free.
Keurig Dr Pepper (NASDAQ:KDP)
Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.
Keurig Dr Pepper reported revenues of $3.81 billion, up 5.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates. On the other hand, Keurig Dr Pepper narrowly topped analysts' revenue expectations during the quarter.
The stock is up 9.9% since the results and currently trades at $31.97.
Read our full, actionable report on Keurig Dr Pepper here, it's free.
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The author has no position in any of the stocks mentioned
