Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Brown-Forman (NYSE: BF.B) 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.

Brown-Forman (NYSE: BF.B)

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Brown-Forman reported revenues of $894 million, down 7.3% year on year. This print fell short of analysts’ expectations by 7.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ organic revenue and EBITDA estimates.

“Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team,” said Lawson Whiting, Brown-Forman’s President and Chief Executive Officer.

The stock is down 19.7% since reporting and currently trades at $26.68.

Read our full report on Brown-Forman 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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 43.6% since reporting. It currently trades at $2.93.

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 10.2% since the results and currently trades at $51.

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

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 $9.30 billion, up 5.8% year on year. This number beat analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.

The stock is up 12.8% since reporting and currently trades at $184.96.

Read our full, actionable report on Philip Morris here, it’s free.

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 $329.3 million, down 7.4% year on year. This result missed analysts’ expectations by 3.8%. Overall, it was a softer quarter as it also produced a miss of analysts’ EBITDA and EPS estimates.

The stock is up 20.8% since reporting and currently trades at $41.

Read our full, actionable report on Celsius 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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