Beverage company Zevia (NYSE:ZVIA) will be reporting results tomorrow before market hours. Here’s what investors should know.

Zevia missed analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $36.37 million, down 15.6% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

Is Zevia a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Zevia’s revenue to grow 4.1% year on year to $39.34 million, slowing from the 6.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zevia has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Zevia’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Celsius’s revenues decreased 4.4% year on year, beating analysts’ expectations by 2.7%, and Coca-Cola reported revenues up 4.2%, topping estimates by 6.5%. Celsius traded up 27.8% following the results while Coca-Cola was also up 6.5%.

Read our full analysis of Celsius’s results here and Coca-Cola’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underperformed, with share prices down 2.5% on average over the last month. Zevia is down 19% during the same time and is heading into earnings with an average analyst price target of $4.28 (compared to the current share price of $3.36).

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