Shares of coconut water maker Vita Coco (NASDAQ:COCO) jumped 12% in Tuesday’s afternoon trading session. The spike in price came after the company raised its full-year sales outlook.
Notably, Vita Coco increased its sales projection for the entire year on predicted growth in its private-label products. Furthermore, the company said mid-percentage growth in its core coconut water product, Vita Coco, will also drive the sales estimates.
What’s more, the company also expects to retain the majority of a private-label business from a key customer that it had previously anticipated to lose. Elsewhere, Vita Coco announced a $40M share repurchase program.
Going forward, the New York-based company now expects net sales to increase by 13%-15%, up from a previous 10%-12%. Additionally, adjusted EBITDA is expected to be $ 64M-67M from $56M-$60M.
Meanwhile, Vita Coco on Tuesday announced Q3 earnings of 26 cents per share, which beat analysts’ estimates. Sales also increased 11% to $138.1 million, marginally missing the $139 million predicted by analysts.
Is COCO a Good Stock to Invest In?
Turning to Wall Street, analysts have a Strong Buy consensus rating on COCO stock based on three Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average COCO price target of $29.67 per share implies a 13.90% upside potential.
