Winners And Losers Of Q4: Philip Morris (NYSE:PM) Vs The Rest Of The Beverages, Alcohol, and Tobacco Stocks

Looking back on beverages, alcohol, and tobacco stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Philip Morris (NYSE:PM) 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 13 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Philip Morris (NYSE:PM)

Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Philip Morris reported revenues of $10.36 billion, up 6.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with revenue in line with analysts’ estimates but a miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 2.9% since reporting and currently trades at $187.34.

Is now the time to buy Philip Morris? 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 $721.6 million, up 117% year on year, outperforming analysts’ expectations by 13.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Celsius achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $53.39.

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

Weakest Q4: Altria (NYSE:MO)

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

Altria reported revenues of $5.08 billion, flat year on year, exceeding analysts’ expectations by 1.1%. Still, it was a slower quarter as it posted a miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 9.5% since the results and currently trades at $69.10.

Read our full analysis of Altria’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 $138.3 million, down 23.5% year on year. This result beat analysts’ expectations by 3.1%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.

MGP Ingredients achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 26.7% since reporting and currently trades at $18.93.

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

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 $385.7 million, down 4.1% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is down 1.8% since reporting and currently trades at $223.25.

Read our full, actionable report on Boston Beer here, it’s free.

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