Coconut water company The Vita Coco Company (NASDAQ: COCO) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Vita Coco missed analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $132.9 million, down 3.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA and gross margin estimates.
Is Vita Coco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vita Coco’s revenue to grow 14.9% year on year to $121.9 million, in line with the 15.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vita Coco has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Vita Coco’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Celsius’s revenues decreased 4.4% year on year, beating analysts’ expectations by 2.7%, and Coca-Cola reported revenues up 4.2%, topping estimates by 6.5%. Celsius traded up 27.8% following the results while Coca-Cola was also up 6.5%.
Read our full analysis of Celsius’s results here and Coca-Cola’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underperformed, with share prices down 2.5% on average over the last month. Vita Coco is up 5.5% during the same time and is heading into earnings with an average analyst price target of $35.78 (compared to the current share price of $39.99).
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