Q3 Earnings Highs And Lows: Molson Coors (NYSE:TAP) Vs The Rest Of The Beverages, Alcohol, and Tobacco Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Molson Coors (NYSE:TAP) 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 14 beverages, alcohol, and tobacco stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

While some beverages, alcohol, and tobacco stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

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 $2.97 billion, down 2.3% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ gross margin estimates but a slight miss of analysts’ revenue estimates.

Molson Coors delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 4.6% since reporting and currently trades at $45.21.

Read our full report on Molson Coors here, it’s free for active Edge members.

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 $725.1 million, up 173% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Celsius achieved 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 28.6% since reporting. It currently trades at $43.33.

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

Weakest Q3: Altria (NYSE:MO)

Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products.

Altria reported revenues of $5.25 billion, down 1.7% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a slight miss of analysts’ revenue estimates.

As expected, the stock is down 6% since the results and currently trades at $58.25.

Read our full analysis of Altria’s results here.

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 $15.13 billion, flat year on year. This result lagged analysts' expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ revenue estimates.

The stock is down 1.7% since reporting and currently trades at $60.38.

Read our full, actionable report on Anheuser-Busch here, it’s free for active Edge members.

MGP Ingredients (NASDAQ:MGPI)

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

MGP Ingredients reported revenues of $130.9 million, down 18.9% year on year. This number surpassed analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

MGP Ingredients had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 4.3% since reporting and currently trades at $24.69.

Read our full, actionable report on MGP Ingredients here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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