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 Constellation Brands (NYSE: STZ) 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 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.

Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results.

Constellation Brands (NYSE: STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $2.52 billion, down 5.5% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA and gross margin estimates.

Unsurprisingly, the stock is down 4.2% since reporting and currently trades at $159.45.

Read our full report on Constellation Brands here, it’s free.

Best Q2: 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 $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 38.9% since reporting. It currently trades at $59.54.

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

Weakest Q2: Tilray (NASDAQ: TLRY)

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a significant miss of analysts’ EPS estimates.

Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 111% since the results and currently trades at $1.47.

Read our full analysis of Tilray’s results here.

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 $3.20 billion, down 1.6% year on year. This result topped analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is up 3.4% since reporting and currently trades at $50.30.

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

Altria (NYSE: MO)

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

Altria reported revenues of $5.29 billion, flat year on year. This print beat analysts’ expectations by 1.8%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 12.1% since reporting and currently trades at $66.58.

Read our full, actionable report on Altria 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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