National Beverage's Q1 Earnings Miss Expectations, Causing Initial Stock Drop Before Recovery
National Beverage (NASDAQ: FIZZ), the maker of LaCroix sparkling water, initially saw its stock drop by 6.3% in early trading on Friday before recovering and rising to a gain of 1.4%. The decline was attributed to disappointing Q1 fiscal year 2027 earnings results released after market close. National Beverage reported earnings per share (EPS) of $0.50, below the expected $0.59 by analysts. Sales remained nearly flat at $330.7 million compared to the previous year and profits fell almost 17%. The company cited elevated input costs as a major factor behind declining profit margins, which dropped to 35%. Management noted that price increases led to reduced demand and lower sales volumes, resulting in minimal revenue growth. Inflationary pressures from aluminum commodity prices, tariffs, fuel, freight, and ingredient costs were also highlighted by management. Looking ahead, National Beverage is grappling with multiple challenges simultaneously, including absorbing some tariff-related expenses while passing others on to customers — both of which are impacting sales and margins.
Tickers: $FIZZ