Reflecting On Beverages, Alcohol, and Tobacco Stocks' Q3 Earnings: Altria (NYSE:MO)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Altria (NYSE:MO) and the best and worst performers in the beverages, alcohol, and tobacco industry.

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 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ gross margin estimates and a slight miss of analysts’ revenue estimates.

Unsurprisingly, the stock is down 1.2% since reporting and currently trades at $61.23.

Is now the time to buy Altria? Access our full analysis of the earnings results 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 $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 a solid 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 6.8% since reporting. It currently trades at $56.53.

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

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, falling short of analysts’ expectations by 1.4%. It was a mixed quarter as it posted 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 in the group. Interestingly, the stock is up 15.7% since the results and currently trades at $50.02.

Read our full analysis of Molson Coors’s results here.

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 result beat analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid 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 3.3% since reporting and currently trades at $24.45.

Read our full, actionable report on MGP Ingredients here, it’s free.

Keurig Dr Pepper (NASDAQ:KDP)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Keurig Dr Pepper reported revenues of $4.31 billion, up 10.7% year on year. This print topped analysts’ expectations by 3.8%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but a slight miss of analysts’ gross margin estimates.

The stock is up 3.1% since reporting and currently trades at $28.01.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.