Primo Water Corporation’s Upcoming Q3 Results Preview
RBC Capital analysts provided their outlook on Primo Water Corporation (NYSE:PRMW) ahead of the upcoming Q3 results, expecting net sales of $580 million (vs. Street’s $582 million) and EBITDA of $115.2 million (vs. Street’s $117.3 million).
The analysts believe underlying topline momentum remains solid, but higher FX headwinds (particularly on the euro) are likely to put pressure on EBITDA results. Thus, while the analysts expect topline in the middle to the higher end of the company’s guidance ranges, they model EBITDA towards the lower end of the ranges.
Given higher FX headwinds, offsetting solid underlying trends, the analysts expect the company to reiterate its 2022 guidance, which includes: (1) revenues of $2.204-2.243 billion, and (2) adjusted EBITDA of $415-$425 million.
| Symbol | Price | %chg |
|---|---|---|
| KO.BA | 18700 | -0.27 |
| PEP.BA | 10875 | -0.92 |
| CLEO.JK | 1430 | 0 |
| ADES.JK | 9900 | 0 |
What to Expect From Primo Water Corporation’s Q4 Results?
Analysts at Deutsche Bank provided their outlook on Primo Water Corporation (NYSE:PRMW) ahead of the company’s Q4 results, expected to be reported on Feb 24.
According to the analysts, the company’s share price decline of around 17% since its investor day in mid-November is a result of persistent inflationary headwinds and deteriorating operating conditions from disruption caused by the Omicron variant in late November/December.
While October trends began the quarter strong from a top-line perspective, the analysts believe that renewed COVID-19 infections in late November into December likely weighed on the company's ability to fully service consumer demand.
The analysts expect higher costs from inflationary headwinds both in COGS (resins/packaging; shipping; manufacturing overheads) and in SG&A (outbound shipping, temporary labor, incentives) pose a downside risk to management's Q4 EBITDA guidance and to consensus estimates.
