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 Celsius (NASDAQ:CELH) 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 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 2.6% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 0.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

John Fieldly, Chairman and CEO of Celsius Holdings, Inc., said: “Celsius continued to drive energy drink category growth at retail in the third quarter and outpaced the category in dollar and volume sales gains despite overall category softness. Pronounced supply chain optimization by our largest distributor, which we believe has largely stabilized, had an outsized and adverse impact on our operating results during an otherwise solid quarter. We remain focused on our long-term growth strategy of expanding our consumer base, broadening our availability, and being the preferred beverage for more occasions.”

Celsius delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 18.6% since reporting and currently trades at $25.84.

Is now the time to buy Celsius? Access our full analysis of the earnings results 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 105% since reporting. It currently trades at $2.22.

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

Tilray Brands (NASDAQ:TLRY)

One of the first companies to be federally licensed to produce and distribute cannabis, Tilray Brands (NASDAQ:TLRY) today offers cannabis and a variety of other wellness products.

Tilray Brands reported revenues of $200 million, up 13.1% year on year, falling short of analysts’ expectations by 9.4%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Tilray Brands delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 18.9% since the results and currently trades at $1.32.

Read our full analysis of Tilray Brands’s results here.

Coca-Cola (NYSE:KO)

A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.

Coca-Cola reported revenues of $11.95 billion, flat year on year. This number topped analysts’ expectations by 2.9%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ organic revenue estimates.

Coca-Cola achieved the biggest analyst estimates beat among its peers. The stock is down 10.7% since reporting and currently trades at $62.01.

Read our full, actionable report on Coca-Cola 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 result lagged analysts' expectations by 4.3%. More broadly, it was actually a strong quarter as it recorded 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 13.8% since reporting and currently trades at $35.06.

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 has 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.

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

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