National Beverage (FIZZ) is expected to see modest sequential improvement in fiscal Q3 sales trends but margins could face pressure, UBS Securities said.
The company is set to release its Q3 results on Thursday after market close. UBS expects the maker of LaCroix sparkling water to report Q3 earnings of about $0.44 per share and full-year 2026 EPS of roughly $2.02.
The brokerage said in a Monday note that volume trends improved sequentially. Takeaway was down about 1.5% year over year in the latest 13-week period compared with a 3.5% decline in the prior quarter. The firm added that National Beverage continues to lose share in the pressured sparkling water category.
The investment firm projects net sales to rise by about 1%, driven by roughly 4% price increases, partly offset by a 3% drop in volumes. UBS flagged the potential for margin pressure from rising aluminum costs and the Midwest premium. However, the firm expects the near-term impact to be limited.
The firm has a sell rating on the stock and lowered its price target to $34 from $35.
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