Zevia (ZVIA) to report earnings tomorrow: here is what to expect

What happened

Zevia, a beverage company, will report earnings this Wednesday after the market closes. Last quarter it reported revenue of $45 million, up 1.1% year on year, and beat analysts' revenue and EBITDA estimates. Analysts expect revenue growth of 10.1% this quarter.

Confirmed

Global impact / market context

Investors will compare Zevia's sales growth with the 10.1% analysts expect and with its past misses on revenue estimates. The results will show whether the company can speed up sales growth while controlling costs, which affects future revenue and cash available to the business.

Analyst inference

Other beverage companies have already reported. Vita Coco grew revenue 33.7% year on year and beat estimates by 6.1%, while Coca-Cola grew revenue 7.6% and topped estimates by 3.7%. Those results give a reference point for judging Zevia's expected 10.1% revenue growth.

Analyst inference

What to watch

1. Zevia's reported revenue and whether it meets, beats, or misses the expected 10.1% year-on-year growth, compared with the 12.3% increase in the same quarter last year. Confirmed
2. Watch whether Zevia's EBITDA, which means earnings before interest, taxes, depreciation and amortization, and its guidance for next quarter exceed analysts' expectations, as they did last quarter. Proposed
3. Compare Zevia's results and any share price reaction with Vita Coco's 11% fall after its beat, to judge whether strong beverage results are being rewarded by investors. Analyst inference

Evidence

• stockstory.org