Why a Few Soft-Drink Stocks Popped Today
Shares of several soft drink companies soared on Tuesday. Cannabis-infused drink specialist New Age Beverages (NASDAQ: NBEV) led the way with an intraday gain of 44.6%. Energy drink veteran Monster Beverages (NASDAQ: MNST) topped out at a 7.7% jump, and soda-and-snacks giant PepsiCo (NASDAQ: PEP) tagged along by rising as much as 5.1%. All three stocks cooled down significantly in the afternoon, again led by New Age Beverages sliding back to a 23% gain as of 3 p.m. EDT.
New Age led the soda-sector surge in terms of market-moving news as well. The company reported preliminary first-quarter results early Tuesday morning, posting revenue of approximately $63 million and gross margin in the "low to mid 60% range." CEO Brent Willis highlighted "accelerated growth" across several target markets, led by China and direct-delivery shipments in the US. The revenue figure topped Wall Street's consensus estimate of roughly $57 million, and the gross margin result is breaking a downward trend over the last few quarters.
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Source Fool.com