Coconut water company The Vita Coco Company (NASDAQ:COCO) will be announcing earnings results tomorrow before the bell. Here's what to look for.

Vita Coco beat analysts' revenue expectations by 7% last quarter, reporting revenues of $106.1 million, up 15.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Vita Coco a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Vita Coco's revenue to grow 1.7% year on year to $111.7 million, slowing from the 13.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vita Coco has missed Wall Street's revenue estimates twice over the last two years.

Looking at Vita Coco's peers in the beverages and alcohol segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 1.6%, and Constellation Brands reported revenues up 7.1%, topping estimates by 2%. Keurig Dr Pepper traded up 4.3% following the results while Constellation Brands was down 1%.

Read our full analysis of Keurig Dr Pepper's results here and Constellation Brands's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the beverages and alcohol stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Vita Coco is up 4.5% during the same time and is heading into earnings with an average analyst price target of $29.9 (compared to the current share price of $25.02).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.