The The Vita Coco Company, Inc. (NASDAQ:COCO) Annual Results Are Out And Analysts Have Published New Forecasts
Shareholders will be ecstatic, with their stake up 22% over the past week following The Vita Coco Company, Inc.'s (NASDAQ:COCO) latest annual results. The result was positive overall - although revenues of US$494m were in line with what the analysts predicted, Vita Coco Company surprised by delivering a statutory profit of US$0.79 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Vita Coco Company
Taking into account the latest results, Vita Coco Company's ten analysts currently expect revenues in 2024 to be US$503.4m, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 7.0% to US$0.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$503.7m and earnings per share (EPS) of US$0.86 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$29.89, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Vita Coco Company analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$27.00. This is a very narrow spread of estimates, implying either that Vita Coco Company is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Vita Coco Company's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vita Coco Company is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vita Coco Company's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$29.89, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Vita Coco Company analysts - going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Vita Coco Company Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
