The investors in Zevia PBC's (NYSE:ZVIA) will be rubbing their hands together with glee today, after the share price leapt 32% to US$1.53 in the week following its third-quarter results. Results look to have been somewhat negative - revenue fell 6.8% short of analyst estimates at US$36m, although statutory losses were somewhat better. The per-share loss was US$0.04, 50% smaller than the analysts were expecting prior to the result. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zevia PBC after the latest results.

See our latest analysis for Zevia PBC

Following the latest results, Zevia PBC's six analysts are now forecasting revenues of US$166.6m in 2025. This would be a meaningful 8.6% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 28% to US$0.25. Before this earnings announcement, the analysts had been modelling revenues of US$175.1m and losses of US$0.30 per share in 2025. Although the revenue estimates have fallen somewhat, Zevia PBC'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.

The consensus price target was broadly unchanged at US$2.35, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Zevia PBC, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$0.95 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. It's pretty clear that there is an expectation that Zevia PBC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% per year. So it's pretty clear that, while Zevia PBC's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded Zevia PBC's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at US$2.35, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Zevia PBC going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Zevia PBC (1 makes us a bit uncomfortable!) that we have uncovered.

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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.