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Can New Age Beverages (NBEV) Beat Q2 Earnings Estimates?

Zacks Equity Research

New Age Beverages Corporation NBEV is slated to report second-quarter 2019 results on Aug 8, before the market opens.

For the second quarter, the Zacks Consensus Estimate for loss is pegged at 1 cent. The company incurred loss of 9 cents in the year-ago quarter. Notably, estimates have remained unchanged over the past 30 days. For quarterly revenues, the consensus mark stands at $63.6 million, indicating significant improvement from the year-ago quarter number.

New Age Beverage Corporation Price, Consensus and EPS Surprise

 

New Age Beverage Corporation Price, Consensus and EPS Surprise

New Age Beverage Corporation price-consensus-eps-surprise-chart | New Age Beverage Corporation Quote

Factors at Play
 
New Age Beverages is benefiting from strength in its portfolio of brands. This also includes the enhancement of cannabis-infused beverage portfolio. Additionally, the company is on track to expand its core brand portfolio. It is likely to gain from its strategic buyouts such as the Morinda acquisition. Notably, it is in the process of integrating Morinda into New Age. This acquisition was completed on Dec 21, 2018.

Furthermore, New Age Beverages has been strengthening its foothold in the e-commerce distribution system. Moreover, it is focused on accelerating business in the second half of 2019 by strengthening organic growth, with the launch of CBD portfolio, expanding core brands’ national distribution in the United States, and a number of other initiatives in the second quarter and throughout the rest of 2019.

Notably, the company began expanding the national distribution of Marley and Búcha in the first quarter through partnerships with Walmart and 7-Eleven. The national launch of these brands has boosted organic growth. The company expects to announce many such national distribution partnerships in the quarters ahead, which should be a sales driver.

Benefits from the aforementioned growth drivers should reflect in this Zacks Rank #4 (Sell) company’s top and bottom-line performance in the second quarter.

Conversely, New Age Beverages has been recovering from inventory shortfalls, mainly owing to working capital issues. This adversely impacted underlying strength of the company. This is likely to be a hindrance while capturing growth opportunities and might affect results in the quarter to be reported. Also, higher operating expenses are likely to weigh on the company’s profitability.

Stocks Likely to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +2.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Monster Beverage Corporation MNST presently has an Earnings ESP of +1.12% and a Zacks Rank #3.

The Kraft Heinz Company KHC currently has an Earnings ESP of +8.00% and a Zacks Rank # 3.

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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
 
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
 
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
 
New Age Beverage Corporation (NBEV) : Free Stock Analysis Report
 
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