Vita Coco (NASDAQ:COCO) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Vita Coco (NASDAQ:COCO) announced its earnings results on Thursday. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.47 by $0.11, Zacks reports. The company had revenue of $243.83 million during the quarter, compared to the consensus estimate of $230.10 million. Vita Coco had a net margin of 15.70% and a return on equity of 31.84%. The firm’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.40 earnings per share.

Here are the key takeaways from Vita Coco’s conference call:

• Third-quarter performance was strong: net sales rose 34% to $244 million, adjusted EBITDA increased to $53 million, and management raised full-year guidance to $810–$820 million in net sales and $170–$175 million in adjusted EBITDA.
• Consumer demand remains robust, with U.S. coconut water retail sales up 28% year to date and Vita Coco branded sales up 27%; international markets, particularly the U.K. and Germany, also delivered exceptional growth.
• Supply-chain constraints, container delays, and retail out-of-stocks caused shipments to lag consumption and constrained near-term growth. Capacity is expected to remain tight through the first half of 2027, although additional capacity is planned for the second half.
• Higher ocean freight, domestic logistics, packaging, and factory costs are expected to reduce fourth-quarter gross margin to approximately 33%. The company plans pricing increases in early 2027 to offset structural cost inflation, while margins remain exposed to the path of freight costs.
• The Copra acquisition is integrating ahead of expectations and adds exposure to the faster-growing, higher-priced super-premium Thai Nam Hom segment. Vita Coco also plans sports-inspired flavors, Vita Coco Kids, a new food-service can, and additional Treats products to attract younger consumers and expand consumption occasions.

Vita Coco Price Performance

NASDAQ:COCO traded down $2.47 on Friday, reaching $56.53. 2,124,111 shares of the company’s stock were exchanged, compared to its average volume of 1,269,068. The firm has a market cap of $3.24 billion, a price-to-earnings ratio of 28.41, a P/E/G ratio of 1.56 and a beta of 0.76. Vita Coco has a 52 week low of $39.60 and a 52 week high of $85.83. The stock has a fifty day simple moving average of $58.14 and a 200-day simple moving average of $64.86.

Key Headlines Impacting Vita Coco

Here are the key news stories impacting Vita Coco this week:

• Positive Sentiment: Third-quarter net sales rose 34% year over year to approximately $244 million, while net income increased to $35 million and adjusted EBITDA climbed to $53 million. Coconut water sales grew 15%, and organic net sales increased 18%. The Vita Coco Company Reports Third Quarter 2026 Financial Results and Raises Full Year Guidance
• Positive Sentiment: Adjusted earnings of $0.58 per share exceeded analyst estimates of $0.47, while revenue surpassed the approximately $230 million consensus forecast. Earnings also improved from $0.40 per share in the year-ago quarter. Vita Coco Company Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Vita Coco raised fiscal 2026 revenue guidance to $810 million-$820 million, above the roughly $802 million consensus estimate, and projected adjusted EBITDA of $170 million-$175 million. Vita Coco Expects 810 Million to 820 Million 2026 Net Sales
• Neutral Sentiment: Management plans pricing actions in the first quarter of 2027. These could support future revenue and margins, but may also affect consumer demand and volume growth.
• Negative Sentiment: Despite the earnings beat and guidance increase, shares declined after the report, suggesting the results may have been partly anticipated or that investors remain concerned about execution and valuation. COCO trades at a relatively elevated earnings multiple and below its longer-term moving averages, potentially increasing sensitivity to profit-taking.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. The Goldman Sachs Group set a $90.00 price target on shares of Vita Coco and gave the stock a “buy” rating in a report on Thursday, July 23rd. Weiss Ratings raised shares of Vita Coco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, October 14th. Oppenheimer began coverage on Vita Coco in a research note on Thursday, October 1st. They issued an “outperform” rating and a $70.00 target price on the stock. Zacks Research lowered Vita Coco from a “strong-buy” rating to a “hold” rating in a report on Monday, September 21st. Finally, Evercore reaffirmed an “outperform” rating on shares of Vita Coco in a research report on Friday. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $74.12.

About Vita Coco

The Vita Coco Company, Inc is a beverage company focused on hydration and wellness products. Its flagship brand, Vita Coco, offers coconut water in a variety of formats and flavors, including original, flavored and pressed coconut water products. The company also markets other beverages under brands such as Ever & Ever, a plant-based water brand, and PWR LIFT, a functional hydration beverage.

Vita Coco products are sold through grocery stores, mass merchandisers, convenience stores, club retailers, e-commerce platforms and foodservice channels.