What Happened?

Shares of coconut water company The Vita Coco Company (NASDAQ:COCO) fell 12.7% in the morning session after the company reported weak fourth-quarter 2024 results with full-year revenue guidance that slightly missed expectations. On the other hand, revenue exceeded projections. Adjusted EBITDA also topped expectations, though earnings were in line. Overall, this quarter could have been better, as strong profit growth was overshadowed by a softer full-year revenue outlook​.

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What The Market Is Telling Us

Vita Coco’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Vita Coco and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 12 months ago when the stock gained 16.5% on the news that the company reported strong fourth-quarter 2023 results that blew past analysts' EPS expectations. Its revenue also outperformed Wall Street's estimates. On the other hand, its full-year revenue guidance was underwhelming. However, adjusted EBITDA guidance came in ahead, which is sure to blunt the impact of the below-Consensus revenue guidance. Overall, we think this was a strong quarter that should satisfy shareholders.

Vita Coco is down 2% since the beginning of the year, and at $34.45 per share, it is trading 14.5% below its 52-week high of $40.30 from February 2025. Investors who bought $1,000 worth of Vita Coco’s shares at the IPO in October 2021 would now be looking at an investment worth $2,548.

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