Q3 Earnings Roundup: Keurig Dr Pepper (NASDAQ:KDP) And The Rest Of The Beverages and Alcohol Segment
Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 now behind us, let’s have a look at Keurig Dr Pepper (NASDAQ:KDP) 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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but beverages and alcohol stocks held their ground better than others, with share prices down 3% on average since the previous earnings results.
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.
"In the third quarter, we maintained healthy revenue momentum and delivered a significant gross margin inflection, helping to fund reinvestment in our brands and capabilities," said Chairman and CEO Bob Gamgort.
The stock is up 7.5% since the results and currently trades at $31.27.
Read our full report on Keurig Dr Pepper 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, up 104% year on year, outperforming analyst expectations by 9.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Celsius delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 10.1% since the results and currently trades at $53.09.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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.
Duckhorn had the slowest revenue growth and weakest full-year guidance update in the group. The stock is down 13% since the results and currently trades at $8.88.
Read our full analysis of Duckhorn's results here.
MGP Ingredients (NASDAQ:MGPI)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQGS:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $211.6 million, up 5.2% year on year, surpassing analyst expectations by 1.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is down 8.9% since the results and currently trades at $85.69.
Read our full, actionable report on MGP Ingredients here, it's free.
PepsiCo (NASDAQ:PEP)
With a history that goes back more than a century, PepsiCo (NASDAQ:PEP) is a household name in food and beverages today and best known for its flagship soda.
PepsiCo reported revenues of $23.45 billion, up 6.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an impressive beat of analysts' earnings guidance for the full year. On the other hand, the year on year volume decline was greater than expectations.
The stock is up 4.1% since the results and currently trades at $168.
Read our full, actionable report on PepsiCo here, it's free.
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The author has no position in any of the stocks mentioned
