Vita Coco shares have rallied 43.2% year-to-date and nearly doubled over the past 12 months, pushing its valuation to 39.52 times forward earnings, more than double the 19.05 times for its Zacks sub-industry. First-quarter net sales rose 37.3% to $179.8 million, earnings per share climbed to 50 cents from 31 cents, and management raised its full-year net sales guidance to $720 million to $735 million with adjusted EBITDA of $132 million to $138 million. The company ended the quarter with $202 million in cash and no debt, and repurchased $12 million of shares. However, management cautioned that first-quarter growth was boosted by promotional timing with a major club retailer and that second-half margins may face pressure from higher packaging, energy, transportation, and promotional costs. The stock carries a Zacks Rank of 2, or Buy, but its Value Score of F and VGM Score of D suggest bargain-focused investors may want a better entry point.
Vita Coco Company IncStrong Q1 earnings beat, raised guidance, and share buyback drove stock surge.
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