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

Vita Coco (NASDAQ:COCO) released its quarterly earnings data on Thursday. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.11, Zacks reports. Vita Coco had a net margin of 15.50% and a return on equity of 31.09%. The business had revenue of $243.83 million for the quarter, compared to analyst estimates of $230.10 million. During the same quarter last year, the firm earned $0.40 EPS. Vita Coco’s quarterly revenue was up 33.7% compared to the same quarter last year.

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 Trading Up 5.1%

COCO opened at $61.99 on Friday. The stock has a market capitalization of $3.56 billion, a P/E ratio of 32.56, a P/E/G ratio of 1.71 and a beta of 0.76. The firm’s fifty day simple moving average is $58.32 and its 200 day simple moving average is $64.91. Vita Coco has a 12 month low of $39.60 and a 12 month high of $85.83.

Key Headlines Impacting Vita Coco

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

• Positive Sentiment: Q3 results exceeded expectations: Third-quarter net sales rose 34% year over year to approximately $244 million, above the $230.1 million consensus estimate. Earnings were $0.58 per share, beating the $0.47 consensus and increasing from $0.40 a year earlier. Vita Coco third-quarter financial results
• Positive Sentiment: Profitability improved substantially: Net income increased by $11 million to $35 million, while non-GAAP adjusted EBITDA rose by $21 million to $53 million. Vita Coco coconut water sales grew 15%, supporting continued demand for the company’s core product. Vita Coco beat-and-raise results
• Positive Sentiment: Full-year guidance was raised: Vita Coco now expects fiscal 2026 revenue of $810 million to $820 million, above the $802.3 million analyst consensus, and adjusted EBITDA of $170 million to $175 million. Vita Coco 2026 guidance
• Neutral Sentiment: Pricing changes are planned: Management expects to implement pricing actions in the first quarter of 2027. These could support future revenue and margins, though their effect on consumer demand remains uncertain. Vita Coco Q3 2026 analysis
• Negative Sentiment: Shares declined despite the earnings beat: The market may have been looking for an even stronger outlook or may be taking profits after the recent run-up. With the stock trading at a relatively elevated P/E ratio of about 35, investors may be particularly sensitive to any concerns about future growth, pricing execution, or valuation.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on COCO shares. Morgan Stanley lifted their price target on shares of Vita Coco from $65.00 to $68.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 28th. Wall Street Zen lowered shares of Vita Coco from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Oppenheimer initiated coverage on shares of Vita Coco in a research report on Thursday, October 1st. They issued an “outperform” rating and a $70.00 price objective for the company. Piper Sandler reaffirmed an “overweight” rating on shares of Vita Coco in a research note on Friday. Finally, Zacks Research lowered Vita Coco from a “strong-buy” rating to a “hold” rating in a report on Monday, September 21st. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $73.50.

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.