Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.7% below.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average 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 $3.04 billion, down 7.8% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates.

Interestingly, the stock is up 12.4% since reporting and currently trades at $63.52.

Read our full report on Molson Coors here, it’s free.

Best Q3: 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 $36.37 million, down 15.6% year on year, falling short of analysts’ expectations by 6.8%. However, the business still had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 75.1% since reporting. It currently trades at $1.90.

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

Weakest 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 $265.7 million, down 30.9% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Celsius delivered the slowest revenue growth in the group. As expected, the stock is down 14% since the results and currently trades at $27.30.

Read our full analysis of Celsius’s results here.

Keurig Dr Pepper (NASDAQ:KDP)

Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.

Keurig Dr Pepper reported revenues of $3.89 billion, up 2.3% year on year. This result missed analysts’ expectations by 0.8%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates.

The stock is down 8.6% since reporting and currently trades at $33.56.

Read our full, actionable report on Keurig Dr Pepper 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 $132.9 million, down 3.7% year on year. This print missed analysts’ expectations by 4.3%. More broadly, it was actually a strong quarter as it logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

Vita Coco delivered the highest full-year guidance raise among its peers. The stock is up 10.4% since reporting and currently trades at $34.

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

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 US 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. Said differently, there's still much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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