Coconut water company The Vita Coco Company (NASDAQ:COCO) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.
Vita Coco beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $130.9 million, up 17.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 11.9% year on year to $161.3 million, improving from the 3.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at Vita Coco’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Boston Beer delivered year-on-year revenue growth of 1.5%, meeting analysts’ expectations, and Coca-Cola reported revenues up 2.1%, topping estimates by 0.5%. Boston Beer traded up 6.5% following the results while Coca-Cola was down 1.4%.
Read our full analysis of Boston Beer’s results here and Coca-Cola’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 3.8% on average over the last month. Vita Coco is up 2.5% during the same time and is heading into earnings with an average analyst price target of $39.56 (compared to the current share price of $37).
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