It's been a good week for The Vita Coco Company, Inc. (NASDAQ:COCO) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.6% to US$31.97. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$133m, statutory earnings beat expectations by a notable 22%, coming in at US$0.32 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Vita Coco Company

Taking into account the latest results, the most recent consensus for Vita Coco Company from ten analysts is for revenues of US$568.8m in 2025. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 3.1% to US$1.08. In the lead-up to this report, the analysts had been modelling revenues of US$561.9m and earnings per share (EPS) of US$1.04 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to US$33.25. 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 Vita Coco Company, with the most bullish analyst valuing it at US$36.00 and the most bearish at US$30.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vita Coco Company is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Vita Coco Company'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.6% annually. So although Vita Coco Company is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vita Coco Company's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Vita Coco Company. Long-term earnings power is much more important than next year's profits. We have forecasts for Vita Coco Company going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Vita Coco Company's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.