Vita Coco (COCO) Q3 Earnings Report Preview: What To Look For

Coconut water company The Vita Coco Company (NASDAQ:COCO) will be announcing earnings results tomorrow morning. Here’s what to look for.

Vita Coco met analysts’ revenue expectations last quarter, reporting revenues of $144.1 million, up 3.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ gross margin and 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 be flat year on year at $138.9 million, slowing from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 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 Q3 results, giving us a hint as to what we can expect. Coca-Cola posted flat year-on-year revenue, beating analysts’ expectations by 2.9%, and Constellation Brands reported revenues up 2.9%, in line with consensus estimates. Coca-Cola traded down 3.1% following the results while Constellation Brands was also down 3.5%.

Read our full analysis of Coca-Cola’s results here and Constellation Brands’s results here.

Investors in the beverages, alcohol and tobacco segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Vita Coco’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $30.67 (compared to the current share price of $28.50).

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