Zevia PBC (NYSE:ZVIA) Released Earnings Last Week And Analysts Lifted Their Price Target To US$4.67

Zevia PBC (NYSE:ZVIA) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 6.7% better than analyst forecasts at US$45m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.01 per share, were 6.7% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Zevia PBC's six analysts currently expect revenues in 2025 to be US$161.1m, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$0.19. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$160.7m and losses of US$0.18 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a moderate increase in its losses per share forecasts.

Check out our latest analysis for Zevia PBC

Although the analysts are now forecasting higher losses, the average price target rose 13% to 4.125, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Zevia PBC at US$6.00 per share, while the most bearish prices it at US$2.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. One thing stands out from these estimates, which is that Zevia PBC is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.5% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.6% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.7% per year. So although Zevia PBC's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Zevia PBC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Zevia PBC going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Zevia PBC that you need to take into consideration.

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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.