What To Expect From Vita Coco's (COCO) Q2 Earnings

What To Expect From Vita Coco's (COCO) Q2 Earnings

Coconut water company The Vita Coco Company (NASDAQ:COCO) will be reporting results tomorrow before market hours. Here's what to look for.

Vita Coco met analysts' revenue expectations last quarter, reporting revenues of $111.7 million, up 1.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings 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 3.3% year on year to $144.3 million, slowing from the 21.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Vita Coco Total Revenue

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 twice over the last two years.

Looking at Vita Coco's peers in the beverages and alcohol segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Boston Beer's revenues decreased 4% year on year, missing analysts' expectations by 3.1%, and Coca-Cola reported revenues up 2.9%, topping estimates by 4.8%. Boston Beer traded up 7.4% following the results while Coca-Cola was also up 1.6%.

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 and alcohol segment, with share prices up 3.2% on average over the last month. Vita Coco is down 18% during the same time and is heading into earnings with an average analyst price target of $30.2 (compared to the current share price of $22.84).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.