Q4 Earnings Roundup: Constellation Brands (NYSE:STZ) And The Rest Of The Beverages and Alcohol Segment
As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the beverages and alcohol stocks, including Constellation Brands (NYSE:STZ) 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 Q4; on average, revenues beat analyst consensus estimates by 1.1% while next quarter's revenue guidance was 3.9% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but beverages and alcohol stocks held their ground better than others, with the share prices up 3.5% on average since the previous earnings results.
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 $2.47 billion, up 1.4% year on year, falling short of analyst expectations by 2.6%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.
The stock is up 5.1% since the results and currently trades at $254.77.
Is now the time to buy Constellation Brands? 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 $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.
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 1.8% since the results and currently trades at $10.03.
Read our full analysis of Duckhorn'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 $601.6 million, flat year on year, surpassing analyst expectations by 1.2%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. On the other hand, the company beat analysts' operating margin expectations this quarter.
The stock is down 3.8% since the results and currently trades at $351.
Read our full, actionable report on Boston Beer 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 $43.09 million, down 2.6% year on year, surpassing analyst expectations by 9%. It was a mixed quarter for the company, with a miss of analysts' operating margin and earnings estimates. On the other hand, its full-year revenue guidance came in higher than Wall Street's estimates.
Zevia PBC delivered the highest full-year guidance raise among its peers. The stock is down 7.9% since the results and currently trades at $1.87.
Read our full, actionable report on Zevia PBC here, it's free.
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The author has no position in any of the stocks mentioned
