Zevia PBC (NYSE:ZVIA) Q4 2025 Earnings call February 25, 2026 04:30 PM ET Company ParticipantsAmy Taylor - President and CEOGirish Satya - CFO and Principal Accounting OfficerJean Fontana - Senior Managing DirectorConference Call ParticipantsAndrew Strelzik - Senior AnalystDara Mohsenian - Managing Director and Senior Equity AnalystEric DesLauriers - Senior Research AnalystJim Salera - Research AnalystSarang Vora - AnalystAmy TaylorGreetings. Welcome to the Zevia PBC fourth quarter and full year 2025 earnin ...

Zevia PBC (NYSE:ZVIA) Q4 2025 Earnings call February 25, 2026 04:30 PM ET Speaker0Greetings. Welcome to the Zevia PBC fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, J ...

Core Insights - Monster Beverage Corporation (MNST) is anticipated to report strong growth in both revenue and earnings for Q4 2025, driven by robust demand for energy drinks, effective pricing strategies, and ongoing international market expansion [1][9] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Q4 revenues is $2.1 billion, reflecting a 13% increase from the same quarter last year [2][9] - The consensus estimate for earnings is 49 cents per share, indicating a 28.98% rise compared to the previous year [2][9] - The consensus estimates have remained stable over the past 30 days, with the company having a history of positive earnings surprises [2][8] Demand and Market Trends - Continued strength in global energy drink demand is expected, particularly in North America, EMEA, and Asia-Pacific regions [3] - The energy drink category is experiencing healthy growth, supported by increased household penetration and consumer interest in functionality and lifestyle [3] - Monster Beverage's diverse product portfolio, including Monster Energy and the Ultra family, positions the company to capitalize on evolving consumer preferences, especially for zero-sugar and flavored products [3] Innovation and Product Mix - Product innovation, particularly within the Ultra and Juice Monster families, is a key growth driver, supported by strong demand for zero-sugar options and new flavor launches [4] - Limited-time offerings and athlete-backed products are crucial for maintaining brand relevance and encouraging repeat purchases [4] Pricing and Cost Management - Pricing actions and cost management are expected to significantly influence profitability, with selective price adjustments and reduced promotional allowances anticipated to help maintain gross margins [5] - Ongoing supply chain optimization and strategic hedging against aluminum price volatility are expected to stabilize input costs [5] International Performance and Macro Conditions - International markets are contributing positively to Monster Beverage's performance, although currency fluctuations and regulatory developments present potential challenges [6] Operating Expenses - The company is facing high operating expenses due to increased costs related to sponsorships, endorsements, and payroll, which may necessitate tighter expense management to preserve margins [7] Valuation and Stock Performance - Monster Beverage's stock is trading at a premium, with a forward P/E ratio of 35.49x compared to the industry average of 20.08x [11] - The stock has gained 29.5% over the past six months, outperforming the industry growth of 14.6% [13]

Core Insights - Keurig Dr Pepper Inc. (KDP) is expected to report fourth-quarter 2025 results on February 24, with projected revenue of $4.36 billion, reflecting a 7.2% increase year-over-year [1][9] - The consensus estimate for KDP's earnings per share (EPS) remains at 59 cents, indicating a 1.7% year-over-year growth [2] Financial Performance - KDP's Refreshment Beverages segment is projected to generate $2.7 billion in revenue, a 12.5% increase from the previous year, driven by pricing and volume gains [5][9] - The company has achieved an average earnings surprise of 3.1% over the last four quarters, with the last quarter showing a break-even earnings surprise [2] Growth Drivers - Continued strength in brand performance, pricing actions, and expansion initiatives are contributing positively to KDP's results [3][4] - The company is focusing on premium and cold coffee innovations, along with partnerships to enhance its product portfolio [4] Challenges - KDP faces challenges from tariff and inflationary pressures, particularly in green coffee prices, and has been experiencing a sluggish performance in its Coffee segment [6][9] - Elevated selling, general and administrative (SG&A) costs, including increased marketing investments, are also impacting profitability [6] Valuation - KDP's stock is currently trading at a forward price-to-earnings ratio of 13.25x, which is below its five-year high of 23.33x and the industry average of 20.08x, indicating potential value for investors [7] Market Performance - KDP's shares have increased by 8.4% over the past three months, compared to the industry's growth of 12.5% [8]

Core Insights - The Coca-Cola Company (KO) reached a new 52-week high of $80.41, reflecting renewed investor confidence driven by strong fourth-quarter 2025 performance [1][9] - The company reported resilient performance supported by steady organic revenue growth, disciplined pricing, and ongoing margin expansion despite currency headwinds [2][10] Financial Performance - In Q4 2025, Coca-Cola achieved a 6% increase in comparable earnings per share, driven by improved gross and operating margins, productivity initiatives, and effective revenue management [11][10] - The company expects 4-5% organic revenue growth in 2026, with comparable net revenues benefiting from a 1% currency tailwind [14][9] Stock Performance - KO shares advanced 11% over the past six months, outperforming key peers like PepsiCo, which grew by 12.5%, while Keurig Dr Pepper and Monster Beverage saw declines of 13.6% and 23% respectively [3][6] - Coca-Cola's stock is trading above its 50-day and 200-day moving averages, indicating bullish sentiment [7][8] Market Position and Strategy - Coca-Cola's diversified geographic footprint and broad beverage portfolio contributed to its growth, with strong performance in North America and Latin America offsetting softer conditions in Asia-Pacific [12][10] - The company continues to focus on innovation and brand activation, including zero-sugar offerings and localized product launches, to support revenue momentum [12][10] Cash Flow and Valuation - Coca-Cola's strong cash flow generation and balance sheet flexibility enhance investor confidence, allowing for continued investment in growth and sustaining its dividend growth streak [13][13] - The current forward 12-month price-to-earnings (P/E) multiple of 24.24X is higher than the industry average of 20.15X, indicating a relatively expensive valuation compared to peers [19][20] Outlook and Challenges - The 2026 outlook reflects confidence in Coca-Cola's strategy, with expected profitability increases and adjusted free cash flow projected at $12.2 billion [15][14] - However, the company faces near-term challenges, including slowing volume growth in mature markets and exposure to volatile input costs and currency fluctuations [21][22]

Market Overview - U.S. stock futures are indicating a positive open, with S&P 500 futures up approximately 0.1% to 0.2%, Nasdaq 100 futures advancing between 0.1% and 0.35%, and Dow Jones Industrial Average futures increasing by 0.1% to 0.26% [2][3] - The Dow Jones Industrial Average (DJIA) closed at a record high of 50,135.87 points, marking its third consecutive record close, while the S&P 500 (SPX) and Nasdaq Composite (IXIC) experienced slight declines [2][4] Economic Indicators - The upcoming January Employment Situation Report is highly anticipated, with economists forecasting job growth of 55,000 to 67,000 new jobs, a decrease from the average monthly increase in 2024 [5] - Average hourly earnings are projected to rise by 3.6% year-over-year, down from 3.8% in December, indicating a potential moderation in wage growth [5] Corporate Earnings - Several prominent companies are set to report earnings, including McDonald's Corporation (MCD), T-Mobile US Inc. (TMUS), and Shopify Inc. (SHOP), which is expected to report strong results due to its position in the "AI commerce wars" [7][12] - Cloudflare Inc. (NET) saw a significant jump of 15.23% in premarket trading after reporting stronger-than-expected fourth-quarter results [12] - Shopify Inc. (SHOP) experienced a notable surge of 7.5% on Tuesday, fueled by an analyst upgrade and increased price target [12] - Coca-Cola Company (KO) shares dropped 3.8% after its fourth-quarter revenues fell short of estimates [12] - Spotify Technology S.A. (SPOT) soared 10% on Tuesday, driven by a first-quarter earnings forecast that exceeded expectations [12] Sector Performance - The technology sector is facing pressure due to concerns about the disruptive potential of artificial intelligence, impacting stocks like those in the Nasdaq Composite [4] - Under Armour Inc. (UAA) shares fell 5.7% after a downgrade from Citi, citing pressures on its North America turnaround [12] - DuPont de Nemours Inc. (DD) gained 2% after forecasting full-year adjusted profit above expectations [12]

Core Insights - Philip Morris International Inc. (PM) is expected to show growth in both revenue and earnings for Q4 2025, with revenue estimates at approximately $10.4 billion, reflecting a 7.3% increase year-over-year [1][9] - The earnings consensus remains steady at $1.67 per share, indicating a 7.7% increase from the previous year [2][9] Revenue and Earnings Performance - The anticipated revenue growth is supported by the company's shift towards a smoke-free product portfolio, which accounted for over 42% of gross profit in Q3 2025, driven by strong sales of IQOS, ZYN, and VEEV [3][9] - Smoke-free shipment volumes rose by 16.6%, and organic smoke-free revenues increased by 13.9%, indicating a favorable product mix and pricing strategy [4] Margin and Profitability - Pricing discipline and cost efficiencies have been significant contributors to margin expansion, with notable adjusted operating margin growth in Q3, supported by strong gross margins across both smoke-free and combustible categories [5] - Ongoing productivity initiatives and benefits from smoke-free growth are expected to continue supporting profitability, despite high commercial investments [5] Challenges and Headwinds - The company faces challenges from declining combustible cigarette volumes and foreign exchange volatility, with cigarette shipment volumes decreasing at a low-single-digit rate in Q3 [6] - These structural industry pressures are likely to persist into Q4, potentially impacting overall performance [6] Earnings Prediction Model - The current earnings prediction model does not indicate a strong likelihood of an earnings beat for Philip Morris, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]

Core Viewpoint - Warren Buffett expresses optimism about stock market declines, viewing them as opportunities for long-term investment rather than reasons for panic [2][10]. Group 1: Market Reaction - The stock market was projected to drop by approximately 3% due to fears surrounding the coronavirus pandemic [1]. - Buffett indicates that he prefers to buy stocks when prices are lower, likening it to buying food at a discount [2][9]. - He notes that historical market declines have often presented good buying opportunities, suggesting that investors should not be deterred by short-term fluctuations [10][12]. Group 2: Long-term Investment Perspective - Buffett emphasizes that stocks should be viewed as businesses, and investors should focus on the long-term outlook rather than daily market movements [5][14]. - He asserts that the 10 to 30-year outlook for American businesses remains unchanged despite current market conditions [5][14]. - The company plans to continue buying stocks as long-term investments, reinforcing the idea that short-term market news should not dictate investment decisions [11][14].

Core Insights - Keurig Dr Pepper Inc. dominates the single-serve coffee pod market, selling approximately 13 billion K-Cup pods annually [1] - The company is recalling 80,000 McDonald's McCafe-branded K-Cup Pods due to potential caffeine content in products labeled as decaf [2][3] - The recall is classified as Class II by the FDA, indicating possible temporary health consequences [2] Company Performance - Keurig Dr Pepper Inc. has a profit margin of 16.7% in 2025, outperforming competitors such as J.M. Smucker Co. (7.3%), Nestlé (16.3%), Kraft Heinz Co. (12.1%), and Starbucks Corporation (9.5%) [7][8] - The company generated revenue of $1.6 billion and a profit of $269.1 million [14] Recall Details - The recalled product is the McCafe Premium Roast Decaf Coffee K-Cup Pods, sold exclusively through Amazon, with a best-by date of November 17, 2026 [5] - The recall affects specific states: California, Indiana, and Nevada [5] Industry Context - Labeling errors account for approximately 45.5% of food recalls, costing the industry nearly $2 billion annually [4] - The convenience of K-Cup pods has led to a significant shift in consumer behavior, with over 38 million homes in the U.S. now using single-serve coffee systems [13]

Group 1: Investment Strategy - The article emphasizes the appeal of dividend stocks, particularly when combined with a dividend reinvestment plan (DRIP), allowing investors to buy shares and reinvest dividends without active management [2][3] - The author suggests that while alternative energy sources are gaining attention, oil remains a dominant force in the energy sector, with Enterprise Products Partners being a strong investment option [3][6] Group 2: Enterprise Products Partners (EPD) - Enterprise Products Partners operates a vast network of oil and natural gas pipelines in the U.S., ensuring efficient distribution of oil [5] - The company has a market capitalization of $71 billion and currently pays an annual distribution of $2.20 per share, yielding 6.69% at current prices, with a history of growing its dividend for 27 consecutive years [5][6] Group 3: T. Rowe Price Group (TROW) - T. Rowe Price Group has been providing financial services since 1937 and boasts a nearly 40-year dividend growth streak [7] - The company has a market capitalization of $23 billion, with a current dividend yield of 4.77% and a growth rate of 7.13% over the past five years, supported by strong financials including negligible debt and significant cash reserves [9] Group 4: PepsiCo (PEP) - PepsiCo is highlighted as a strong investment choice, with a current market capitalization of $198 billion and an annual dividend of $5.69 per share, yielding 3.89% [11][12] - The company has a remarkable history of growing its dividend for 53 years, with a growth rate of 6.93% over the past five years, outperforming its competitor Coca-Cola, which has a lower yield and growth rate [12][13]