Reflecting On Beverages, Alcohol, and Tobacco Stocks' Q1 Earnings: Altria (NYSE:MO)

Looking back on beverages, alcohol, and tobacco stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Altria (NYSE:MO) 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 16 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1%.

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

Altria (NYSE:MO)

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

Altria reported revenues of $4.52 billion, down 4.2% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

“Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter,” said Billy Gifford, Altria’s Chief Executive Officer.

Interestingly, the stock is up 3.1% since reporting and currently trades at $59.95.

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

Best Q1: Zevia (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 reported revenues of $38.02 million, down 2% year on year, outperforming analysts’ expectations by 1.7%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 37.3% since reporting. It currently trades at $2.80.

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

Weakest Q1: 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 $2.30 billion, down 11.3% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 9.7% since the results and currently trades at $51.26.

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 $121.7 million, down 28.7% year on year. This result beat analysts’ expectations by 3.5%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA and gross margin estimates.

MGP Ingredients scored the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 1.2% since reporting and currently trades at $29.10.

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

Vita Coco (NASDAQ:COCO)

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.

Vita Coco reported revenues of $130.9 million, up 17.2% year on year. This print topped analysts’ expectations by 4%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Vita Coco pulled off the fastest revenue growth among its peers. The stock is up 4.4% since reporting and currently trades at $33.02.

Read our full, actionable report on Vita Coco here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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