Beverage company Zevia (NYSE:ZVIA) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.
Zevia beat analysts’ revenue expectations last quarter, reporting revenues of $45 million, up 1.1% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Zevia a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zevia’s revenue to grow 10.1% year on year, slowing from the 12.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zevia has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Zevia’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. Vita Coco delivered year-on-year revenue growth of 33.7%, beating analysts’ expectations by 6.1%, and Coca-Cola reported revenues up 7.6%, topping estimates by 3.7%. Vita Coco traded down 11% following the results while Coca-Cola was also down 1%.
Read our full analysis of Vita Coco’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 8.3% on average over the last month. Zevia is down 2% during the same time and is heading into earnings with an average analyst price target of $3.96 (compared to the current share price of $1.17).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.