Vita Coco Company's stock experienced a significant plummet of 12.95% in the pre-market trading session on Wednesday. The decline was driven primarily by the company's mixed fourth-quarter earnings results, where it missed analysts' estimates for earnings per share (EPS) but exceeded expectations for revenue.
The coconut water company reported Q4 EPS of $0.06, missing the consensus estimate of $0.08 by a substantial 25% margin. This represents a 45.45% decrease compared to the EPS of $0.11 reported in the same period last year, raising concerns among investors about the company's profitability.
However, Vita Coco's revenue for the quarter stood at $127.29 million, surpassing the analyst consensus estimate of $120.91 million by 5.28%. This 19.92% year-over-year increase in sales was driven by strong demand for the company's products, suggesting that its brand remains popular among consumers.