Primo Water Stock (NYSE:PRMW), Trade Ideas

Primo Water

Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers. Its operations are largely concentrated in North America following the divestment of a significant portion of its international business, which has struggled to turn a profit. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers.

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Microplastics are small plastic fragments found everywhere and can cause harm to human health. Boiling and filtering tap water can reduce them by 90%.

Boiling Water Reduces Microplastics: What Does It Mean For Coca-Cola, PepsiCo&#39;s Bottled Water Brands?

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Primo Water Corp (NYSE: PRMW) shares jumped more than 11% on the heels of the company&#39;s second-quarter (Q2) earnings report, which showed revenue growth of 4% Y/Y to $593 million, beating 

Primo Water Shares Spike As Q2 Earnings Top Estimates, Boosts 2023 Guidance

Flow Beverage Corp’s Steady Expansion Strategy Could Start Delivering Improved Profitability In 2023, With The Company Beginning The Year With An 88% Increase In In-Store Distribution

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Flow Beverage Corp (OTCQX: FLWBF) is one of the fastest-growing premium and sustainable water companies, specializing in naturally mineral-rich alkaline spring water that’s been responsibly sourced and is delivered in renewable packaging.

Flow Beverage Corp&#39;s Steady Expansion Strategy Could Start Delivering Improved Profitability In 2023, With The Company Beginning The Year With An 88% Increase In In-Store Distribution

Primo Water Corp

Raymond James analyst Pavel Molchanov downgrades Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) from Strong Buy to Outperform and maintains the price target from $21 to $21.

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Raymond James Downgrades Primo Water to Outperform, Maintains Price Target to $21

The understudied threat of microplastics has become a major source of concern for large <a href="https://www.benzinga.com/topic/population">sectors of the population.</a>
While scientists have not yet identified the exact consequences of living around microscopic pieces of plastic, their presence <a href="https://www.benzinga.com/news/24/01/36575819/bottled-water-contains-far-more-plastic-particles-but-it-is-not-totally-unexpected-study-reveals">has been found in everything from drinking water</a> to human tissue to the air we breathe.
According to a new study, an everyday solution could help get rid of as much as 90% of microplastics in tap water by simply boiling and filtering it.
<h3 class="wp-block-heading">Microplastics: An Invisible Threat</h3>
The term &#8220;microplastics&#8221; refers to small plastic fragments smaller than 5mm, found as contaminants in urban and natural environments. 
They come from multiple sources including plastics already produced in those sizes, like synthetic fibers of clothing or microbeads included in cosmetic products, or they can appear as a result of the degradation of larger plastic products, such as single-use plastic containers like soda bottles and plastic bags.
Nanoplastics, the tiniest fragments, measure as small as one millionth of a meter.
Public concern about microplastics has grown in recent years after several studies have found them in almost every inch of the world around us.
In 2022, a study from the Netherlands detected microplastics in the blood of 80% of sampled individuals from the general population, and another study from the same year discovered microplastics in living heart tissue.
A few months ago, a study from Shandong University in China found them in the clouds above East China.
Microplastics are especially present in drinking water. A 2018 study found them in 93% of bottled water from nine different countries, and a recent review highlighted their detection in tap water from a wide range of countries, including the U.S., Germany, Mexico, France, China, Japan, Saudi Arabia, and Norway.
Also read: <a href="https://www.benzinga.com/news/23/06/32863902/the-end-of-the-plastic-era-world-delegates-forge-ahead-with-draft-plastics-treaty-to-shape-a-greener">The End Of The Plastic Era? World Delegates Forge Ahead With Draft Plastics Treaty To Shape A Greener World</a>
<h3 class="wp-block-heading">Are Microplastics Harmful?</h3>
While the health effects of microplastics exposure are still being researched, several studies have raised red flags about the ubiquitous presence of these particles in daily life. Their health consequences can vary along different variables, which include the type of plastic, the size of the particles, whether they were inhaled, ingested or touched and the length of exposure.
Microplastics have been linked to negative health impacts, including cellular damage and problems within the gastrointestinal and respiratory systems.
According to a WHO report, microplastics can be harmful to the body not only by themselves, but they can also serve as "vectors of pathogens," providing ways for microbes to enter the organism. They can also worsen symptoms of pre-existing conditions like asthma and chronic obstructive pulmonary disease.
While the overall consensus among scientists is that more research is needed to better understand the health impact of microplastics, it's advised to avoid prolonged exposure to foreign particles as there is no precedent in history to understand what happens to a human body that undergoes daily exposure to small plastic particles from the time of birth.
<h3 class="wp-block-heading">Is Boiling Drinking Water The Solution?</h3>
A study published this week in the Environmental Science &amp; Technology journal found that boiling drinking water can reduce at least 80% of polystyrene, polyethylene, and polypropylene, the most commonly-found types of nano/microplastics.
The team of researchers, from Guangzhou Medical University and Jinan University in China, set out to find ways in which regular people could reduce their daily exposure to microplastics using household methods.
The method was more effective for certain types of tap water. Water supplies from around the globe vary in their chemical composition. In waters that are rich in minerals like calcium or magnesium, the boiling process causes these minerals to trap the plastics into a solid, chalky residue that can be removed by filtering the water.
In waters that were rich in these minerals, the process helped capture up to 90% of the microplastic particles. Yet in those samples that carried fewer amounts of the minerals, only about 25% was removed.
For those wanting to try the method at home, the water should be left to cool and settle after boiling without stirring for about 10 minutes and then filtered with a regular coffee filter.
The researchers wrote in the study that boiling drinking water is a tradition in East Asian countries as it helps get rid of some chemicals and most microbes living in the water.
<h3 class="wp-block-heading">Stocks To Watch</h3>
<ul>
<li>Public companies involved in the sale of bottled water include Coca-Cola Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), PepsiCo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>), Primo Water Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) and Ambev SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) and Primo Water Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NASDAQ">PRMW</a>).</li>
<li>Coca-Cola, PepsiCo, Nestle SA &#8211; ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSRGY#OTC">NSRGY</a>), MONDELEZ INTERNATIONAL INC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>), Unilever plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UL#NYSE">UL</a>), Procter &amp; Gamble Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) and Colgate-Palmolive Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CL#NYSE">CL</a>) were ranked among the top plastic polluters of 2022 by the Break Free From Plastic Global Brand Audit.</li>
<li>Some of the largest running water providers include American Water Works (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AWK#NYSE">AWK</a>) and Essential Utilities (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WTRG#NYSE">WTRG</a>).</li>
<li>Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), Dow Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>) and China Petroleum and Chemical Ord Shs H (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SNPMF#OTC">SNPMF</a>) were the top three producers of single-use plastic items in 2021 as per 2023 Plastic Waste Makers Index report. </li>
</ul>
Now read: <a href="https://www.benzinga.com/news/23/06/32842246/with-363-8-billion-pounds-of-plastic-in-the-ocean-plastic-pollution-will-soon-outweigh-fish">With 363.8 Billion Pounds Of Plastic In The Ocean, Plastic Pollution Will Soon Outweigh Fish</a>
Photo: Shutterstock

Boiling Water Reduces Microplastics: What Does It Mean For Coca-Cola, PepsiCo's Bottled Water Brands?

<ul>
<li>Declares quarterly dividend of $0.09&nbsp;per common share, a&nbsp;13%&nbsp;increase over last year</li>
</ul>

Primo Water Corp Boosts Quarterly Dividend/Share by 13% to $0.09

OUTLOOK
Primo Water&nbsp;is targeting the following results from continuing operations for the&nbsp;first quarter&nbsp;and full-year 2024:
<table border="0" cellpadding="1" cellspacing="0">
<tbody>
<tr>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="2" rowspan="1">
Q1&nbsp;2024 Range
</td>
<td colspan="2" rowspan="1">
FY 2024 Range
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
($ in millions)
</td>
<td colspan="1" rowspan="1">
Low
</td>
<td colspan="1" rowspan="1">
High
</td>
<td colspan="1" rowspan="1">
Low
</td>
<td colspan="1" rowspan="1">
High
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Revenue
</td>
<td colspan="1" rowspan="1">
$435
</td>
<td colspan="1" rowspan="1">
$445
</td>
<td colspan="1" rowspan="1">
$1,840
</td>
<td colspan="1" rowspan="1">
$1,880
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Adjusted EBITDA
</td>
<td colspan="1" rowspan="1">
$85
</td>
<td colspan="1" rowspan="1">
$91
</td>
<td colspan="1" rowspan="1">
$402
</td>
<td colspan="1" rowspan="1">
$422
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Cash Taxes
</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
$30
</td>
<td colspan="1" rowspan="1">
$40
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Cash Interest
</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
$30
</td>
<td colspan="1" rowspan="1">
$50
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Cap-Ex
</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="2" rowspan="1">
~&nbsp;7%&nbsp;of Revenue +&nbsp;$22.5M&nbsp;Strategic
			Investment
</td>
</tr>
<tr>
<td colspan="1" rowspan="1">
Adj. Free Cash Flow
</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
			&nbsp;</td>
<td colspan="1" rowspan="1">
$170
</td>
<td colspan="1" rowspan="1">
$180
</td>
</tr>
</tbody>
</table>

Primo Water Corp Expects Q1 Revenue of $435M-$445M Vs $512.67M Est, FY24 Revenue of $1.84B-$1.88B Vs $2.07B Est

Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) reported quarterly earnings of $0.12 per share which missed the analyst consensus estimate of $0.17 by 29.41 percent. This is a 25 percent decrease over earnings of $0.16 per share from the same period last year. The company reported quarterly sales of $438.70 million which missed the analyst consensus estimate of $577.03 million by 23.97 percent. This is a 17.69 percent decrease over sales of $533.00 million the same period last year.

Primo Water Q4 Adj EPS $0.12 Misses $0.17 Estimate, Sales $438.70M Miss $577.03M Estimate

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Earnings Scheduled For February 22, 2024

TD Securities analyst Derek Lessard maintains Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) with a Buy and lowers the price target from $26 to $23.

TD Securities Maintains Buy on Primo Water, Lowers Price Target to $23

The Transaction excluded the Aimia Foods,&nbsp;United Kingdom,&nbsp;Portugal, and&nbsp;Israel&nbsp;businesses, but each of these will be sold across 2024.

Primo Water Closes The Sale Of A Significant Portion Of Primo Water's International Businesses In An All-Cash Transaction For $575M

Primo Water Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#TSX">PRMW</a>) (the "Company" or "Primo Water"), a leading provider of sustainable drinking water solutions direct to consumers in North America and Europe,&nbsp;today announced that Primo Water's Board of Directors has appointed Robbert Rietbroek as Chief Executive Officer and to the Board of Directors, effective January 1, &nbsp;2024. The appointment concludes a comprehensive CEO search process, launched by the Board following Tom Harrington's decision to retire, with the mandate to appoint a highly capable leader with extensive product innovation, operational and transformational experience, capable of further driving growth across Primo Water's businesses for years to come.
Mr. Rietbroek is a seasoned executive bringing more than 25 years of experience at Fortune 500 companies to Primo Water, including five years as Senior Vice President and General Manager responsible for Quaker Foods North America (QFNA), a reported sector of PepsiCo. Prior to his role at Quaker, Mr. Rietbroek was a Senior Vice President and General Manager PepsiCo Australia and New Zealand. Before his tenure at PepsiCo, Mr. Rietbroek served as Vice President and General Manager Australia, New Zealand, Pacific Islands and Vice President and Global Sector Leader Baby and Child Care at Kimberly-Clark. Mr. Rietbroek also spent nearly 16 years at Procter &amp; Gamble in a variety of management and marketing roles in North America, Latin America, Europe, Middle East, and Africa. Mr. Rietbroek has worked across multiple consumer goods categories and has been recognized for exceptional brand building and innovation, achieving several awards and recognitions.
"On behalf of the Board, I want to thank Tom for his significant contributions and dedicated years of service to Primo Water which helped establish the strong foundation for the future," said Jerry Fowden, Chairman of the Board. "The Board's search committee worked diligently and thoroughly throughout the CEO search process, and we are confident that Robbert is the right person to take Primo Water into its next stage of growth. Robbert has spent the last two decades developing a unique skillset that will enable him to excel in his new role as CEO of Primo Water. He is an outstanding leader with a commitment to excellence and a proven builder and leader of high-performance teams, and I look forward to watching Robbert lead the Company in the years ahead." Mr. Fowden continued, "Robbert has a strong track record of execution, and the Board looks forward to working with him to build on our momentum as well as to help guide Primo Water's ongoing transformation into a leading pure-play water company in North America."
"I am grateful for the opportunity to lead Primo Water and its talented team of associates into the future," said Mr. Rietbroek. "As CEO, I look forward to meeting the needs of our customers and supporting our dedicated associates as we deliver on our strategic priorities, and drive both long-term growth and value creation for our shareowners." Mr. Rietbroek continued, "Water is the source of life, and I am eager to provide hydration solutions that help inspire healthier lives, healthier communities, and a healthier planet."
In connection with his appointment, Mr. Rietbroek will receive a grant of an inducement equity award on the commencement of his employment. Primo Water's Board of Directors approved a $3.5 million grant of restricted share units ("RSUs") to Mr. Rietbroek as a material inducement to his hiring as Primo Water's next CEO. The award will be made outside Primo Water's existing equity incentive plans, but subject to the same terms and conditions as if granted under the Primo Water Corporation 2018 Equity Incentive Plan, as amended. Each RSU will entitle Mr. Rietbroek to receive one Primo Water common share for each RSU that vests. The RSUs will vest in equal installments on each of the first two anniversaries of the grant date, subject to Mr. Rietbroek's continuous service through the applicable vesting dates. The precise number of RSUs granted will be calculated based on the prevailing market price on the first day of his employment.

Management

TSX:PRMW

Primo Water Announces Appointment Of Robbert Rietbroek As CEO, Effective January 1,  2024

Friday marks the last chance for investors to receive the next dividend payout from Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>). 
<h3>What's Happening</h3>
The company announced on Thursday that it would pay shareholders a quarterly dividend of 8 cents per share. On Monday, Primo Water will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 8 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Monday. Shareholders who own PRMW as of the end of Friday's session are eligible to receive the 8 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on December 01, 2023. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
<a href="https://www.benzinga.com/quote/PRMW">Track real-time stock fluctuations for Primo Water on Benzinga.</a>

Friday Is Your Last Chance To Buy Primo Water Before The Dividend Payout

Primo Water Corp Expects Q4 Revenue $558M-$598M Vs $579.84M Est, Reaffirms FY23 Revenue $2.320B-$2.360B Vs $2.34B Est

Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) reported quarterly adjusted earnings of $0.33 per share which beat the analyst consensus estimate of $0.27 by 22.22 percent. This is a 50 percent increase over earnings of $0.22 per share from the same period last year. The company reported quarterly sales of $622.00 million which missed the analyst consensus estimate of $625.80 million by 0.61 percent. This is a 6.40 percent increase over sales of $584.60 million the same period last year.

Primo Water Q3 Adj. EPS $0.33 Beats $0.27 Estimate, Sales $622.00M Miss $625.80M Estimate

Primo Water Enters Into Agreement To Sell Significant Portion Of Its International Businesses For Up To $575M In Cash

JP Morgan analyst Andrea Teixeira maintains Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) with a Overweight and lowers the price target from $20 to $18.

JP Morgan Maintains Overweight on Primo Water, Lowers Price Target to $18

As the day concludes, Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) is preparing to distribute a dividend payout of $0.08 per share, resulting in an annualized dividend yield of 2.31%. This payout is exclusive to investors who held the stock before the ex-dividend date on August 23, 2023.
<h3>Primo Water Recent Dividend Payouts</h3>
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<thead>
<tr>
<th>Ex-Date</th>
<th align="right">Payments per year</th>
<th>Dividend</th>
<th>Yield</th>
<th>Announced</th>
<th>Record</th>
<th>Payable</th>
</tr>
</thead>
<tbody>
<tr>
<td>2023-08-23</td>
<td align="right">4</td>
<td>$0.08</td>
<td>2.31%</td>
<td>2023-08-10</td>
<td>2023-08-24</td>
<td>2023-09-07</td>
</tr>
<tr>
<td>2023-06-01</td>
<td align="right">4</td>
<td>$0.08</td>
<td>2.1%</td>
<td>2023-05-04</td>
<td>2023-06-02</td>
<td>2023-06-14</td>
</tr>
<tr>
<td>2023-03-09</td>
<td align="right">4</td>
<td>$0.08</td>
<td>1.97%</td>
<td>2023-02-22</td>
<td>2023-03-10</td>
<td>2023-03-27</td>
</tr>
<tr>
<td>2022-11-28</td>
<td align="right">4</td>
<td>$0.07</td>
<td>2.09%</td>
<td>2022-11-09</td>
<td>2022-11-29</td>
<td>2022-12-09</td>
</tr>
<tr>
<td>2022-08-23</td>
<td align="right">4</td>
<td>$0.07</td>
<td>2.3%</td>
<td>2022-08-10</td>
<td>2022-08-24</td>
<td>2022-09-07</td>
</tr>
<tr>
<td>2022-06-09</td>
<td align="right">4</td>
<td>$0.07</td>
<td>1.99%</td>
<td>2022-05-11</td>
<td>2022-06-10</td>
<td>2022-06-22</td>
</tr>
<tr>
<td>2022-03-10</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.57%</td>
<td>2022-02-23</td>
<td>2022-03-11</td>
<td>2022-03-28</td>
</tr>
<tr>
<td>2021-11-22</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.49%</td>
<td>2021-11-03</td>
<td>2021-11-23</td>
<td>2021-12-03</td>
</tr>
<tr>
<td>2021-08-18</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.48%</td>
<td>2021-08-05</td>
<td>2021-08-19</td>
<td>2021-09-02</td>
</tr>
<tr>
<td>2021-06-03</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.46%</td>
<td>2021-05-05</td>
<td>2021-06-04</td>
<td>2021-06-16</td>
</tr>
<tr>
<td>2021-03-11</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.54%</td>
<td>2021-02-24</td>
<td>2021-03-12</td>
<td>2021-03-29</td>
</tr>
<tr>
<td>2020-11-23</td>
<td align="right">4</td>
<td>$0.06</td>
<td>1.86%</td>
<td>2020-11-04</td>
<td>2020-11-24</td>
<td>2020-12-04</td>
</tr>
</tbody>
</table>
<h3>Analyzing Primo Water Financial Health</h3>
Companies that pay out steady cash dividends are attractive to income-seeking investors, and companies that are financially healthy tend to maintain their dividend payout schedule. For this reason, investors can find it insightful to see if a company has been increasing or decreasing their dividend payout schedule and if their earnings are growing. 
<h3>YoY Growth in Dividend Per Share</h3>
<img src="https://www.benzinga.com/files/images/story/2023/1694099126_0.png" alt="dividend chart graph" />
From 2019 to 2022, the company's dividend per share showed a positive trend, increasing steadily from $0.24 in 2019 to $0.27 in 2022. This demonstrates the company's commitment to rewarding shareholders by consistently raising dividends.
<h3>YoY Earnings Growth For Primo Water</h3>
<img src="https://www.benzinga.com/files/images/story/2023/1694099126_1.png" alt="earning chart graph" />
From 2019 to 2022, Primo Water has demonstrated an upward trend in earnings, with earnings per share rising from $0.26 to $0.63. This positive earnings growth bodes well for investors looking to generate income through cash dividend payouts.
<h3>Recap</h3>
This article delves into the recent dividend payout of Primo Water and its implications for shareholders. Presently, the company is distributing a dividend of $0.08 per share, leading to an annualized dividend yield of 2.31%.
Given that Primo Water has experienced an increase in dividend per share from 2019 to 2022 along with an increase in earnings per share, it could signal that the company is in good financial standing and that they could be positioned to continue distributing their profits back to their investors.
It is essential for investors to closely track the company's performance in the coming quarters to remain updated regarding any alterations in financials or dividend disbursements.
[Track real-time stock fluctuations for Primo Water on Benzinga.](https://www.benzinga.com/quote/Primo Water (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/prmw#NYSE">PRMW</a>))
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Achieving Growth and Investor Rewards: Primo Water Flourishes with Strong Performance and Rising Profits

Tuesday marks the last chance for investors to receive the next dividend payout from Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>). 
<h3>What's Happening</h3>
The company announced on Thursday that it would pay shareholders a quarterly dividend of 8 cents per share. On Wednesday, Primo Water will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 8 cents lower than it would have opened on any other day.
In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Wednesday. Shareholders who own PRMW as of the end of Tuesday's session are eligible to receive the 8 cents dividend payout for every share that they own. 
According to the company, this dividend will be paid out to shareholders on September 07, 2023. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. 
To keep track of which companies are distributing dividends, <a href="https://www.benzinga.com/calendars/dividends">click here</a> to visit our Dividends Calendar.

Tuesday Is Your Last Chance To Buy Primo Water Before The Dividend Payout

JP Morgan analyst Andrea Teixeira maintains Primo Water (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMW#NYSE">PRMW</a>) with a Overweight and raises the price target from $18 to $20.

JP Morgan Maintains Overweight on Primo Water, Raises Price Target to $20

WIIM

Primo Water shares are trading higher after the company reported better-than-expected Q2 financial results and announced a $50 million share buyback program.

Primo Water Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/prmw#NYSE">PRMW</a>) shares jumped more than 11% on the heels of the company&#39;s second-quarter (Q2) earnings report, which showed revenue growth of 4% Y/Y to $593 million, beating&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/08/n33700470/primo-water-announces-strong-second-quarter-2023-results-and-increases-annual-guidance" style="background-image:none; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">the consensus of $586.8 million</a>.&nbsp;
Revenues benefited from the growth of 7% Y/Y in Water Direct / Water Exchange and 18% Y/Y in Water Refill / Water Filtration, partly negated by the exit from business in Russia and North America single-use bottled water retail.
Gross margin expanded 390 basis points Y/Y to 62.1% in the quarter.
Adjusted EBITDA increased 13% Y/Y to $122 million, with margins increasing 160 basis points Y/Y to 20.5%, led by favorable pricing initiatives, higher customer demand, and&nbsp;cost management.
Adjusted EPS of 24 cents surpassed&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/earnings" style="background-image:none; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">the street view of 20 cents</a>.
Operating cash flow stood at $76.8 million in Q2, higher than $66.7 million a year ago.
As of July 1, cash and cash equivalents stood at $86.8 million.
Repurchase: The Tampa, Florida-based company authorized a new $50 million share repurchase program, replacing the earlier program that expires on Aug. 14.&nbsp;
Dividend: The company declared a dividend per share of $0.08 (+14% Y/Y), payable on September 7, 2023, to shareholders of record as on August 24, 2023.
Outlook: The company expects Q3 revenue of $612 million-$632 million vs. the consensus of $622.8 million and adjusted EBITDA&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/guidance" style="background-image:none; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">of $129 million to $139 million.</a>
The company raised the FY23 revenue outlook to $2.320 billion-$2.360 billion (<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/05/n32207341/primo-water-corporation-announces-first-quarter-2023-results-and-declares-quarterly-dividend" style="background-image:none; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">from $2.30 billion-$2.35 billion</a>) vs. $2.33 billion estimate and adjusted EBITDA to $460 million and $480 million from $450 million and $470 million.
The company reaffirmed the 2024 outlook for high single-digit organic revenue growth and adjusted EBITDA of $530 million.&nbsp;
Price Action: PRMW shares are trading higher by 11.74% at $15.47 on the last check Thursday.&nbsp;

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Earnings Scheduled For August 10, 2023

The beverage industry is experiencing strong growth due to consistent demand, evolving product offerings, and changing consumer preferences. In this scenario, let's analyze which has more profit potential between popular beverage stocks Primo Water (PRMW) and Coca-Cola (KO)... In this piece, I evaluated two beverage stocks, Primo Water Corporation (<a href="https://stocknews.com/stock/PRMW/">PRMW</a>) and The Coca-Cola Company (<a href="https://stocknews.com/stock/KO/">KO</a>), to determine the better investment. I find PRMW a better pick for the reasons explained throughout this article.
The beverage industry is expanding as a result of stable demand, healthier options, innovative flavors, sustainability and the popularity of functional beverages such as energy drinks and plant-based alternatives.
According to Statista, beverage revenue is expected to increase at a <a href="https://www.statista.com/outlook/emo/beverages/worldwide">CAGR of 20.5% to reach $524.20 billion by 2028</a>. This growth can be attributed to various factors, such as the rising demand for healthier and functional beverages, increasing disposable income, and changing consumer preferences towards premium and innovative drinks.
In addition, the functional beverages market is expected to grow at a <a href="https://www.einpresswire.com/article/689993053/functional-beverages-market-projected-to-reach-200-billion-by-2030-fueled-by-rising-demand-for-healthier-alternatives">5.9% CAGR</a> to $200.08 billion by 2030. Functional beverages containing raw fruits, vitamins, herbs, and artificial additives are gaining popularity worldwide due to their physical and mental health benefits, fueled by a growing athlete community, sports enthusiasts, and global fitness trends.
PRMW gained 9.8% over the past three months compared to KO's 3.7% gain. PRMW shares have gained 20.1% over the past nine months compared to KO's 0.75% gain.
Here are the reasons I think PRMW could perform better in the near term:
Recent Developments
On January 2, 2023, PRMW completed the all-cash sale of Primo Water's foreign businesses for $575 million, as previously stated. The sale omitted the Aimia Foods, United Kingdom, Portugal, and Israel businesses, which will be sold in 2024. The revenues from the transaction will be utilized to pay down debt and invest in future growth prospects.
Recent Financial Results
During the fourth quarter, which ended December 31, 2023, PRMW's net revenue grew 8.3% year-over-year to $438.70 million. The company's adjusted EBITDA rose 7.1% from a year-ago quarter to $94.90 million. Also, its adjusted net income and EPS came in at $18.60 million and $0.12.
On the contrary, KO's net operating revenues for the fourth quarter ended December 31, 2023, increased 7.2% year-over-year to $10.85 billion. Its gross profit for the same quarter increased 10.7% year-over-year to $6.22 billion. However, its net income decreased 2.9% year-over-year to $1.97 billion. Its EPS came in at $0.46, representing a decrease of 2.1% over the prior-year quarter.
Expected Financial Performance
Analysts expect PRMW's revenue for fiscal 2024 to increase 5.3% year-over-year to $1.87 billion. Its revenue for fiscal 2025 is expected to increase 5.9% year-over-year to $1.98 billion.
For fiscal 2024, KO's EPS and revenue are expected to increase 4.6% and marginally year-over-year to $2.81 and $45.81 billion, respectively. Its EPS and revenue for fiscal 2025 are expected to increase 7% and 5.3% year-over-year to $3.01 and $48.22 billion, respectively.
Profitability
PRMW's trailing-12-month <a href="https://www.investopedia.com/terms/g/gross_profit_margin.asp">gross profit margin</a> of 64.17% is higher than KO's 59.5%. In addition, PRMW's trailing-12-month asset turnover ratio of 0.49x is higher than KO's 0.48x.
Thus, PRMW is more profitable.
Valuation
In terms of trailing-12-month Price/Book, KO is currently trading at 10.08x, which is significantly higher than PRMW's 1.77x. KO's trailing-12-month Price/Sales of 5.74x is 296.5% higher than PRMW's 1.44x.
Thus, PRMW is relatively more affordable.
POWR Ratings
PRMW has an overall rating of B, which equates to a Buy in our proprietary <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. On the other hand, KO has an overall rating of C, translating to a Neutral. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. PRMW has a B grade for Growth, consistent with its stable performance in the last reported quarter. On the other hand, KO has a C grade, in sync with its mixed financial performance.
Of the 34 stocks in the B-rated <a href="https://stocknews.com/category/beverages/">Beverages</a> industry, PRMW is ranked #5, while KO is ranked #16 in the same industry.
Beyond what we've stated above, we have also rated both stocks for Momentum, Quality, Sentiment, Value and Stability. <a href="https://stocknews.com/stock/PRMW/">Click here</a> to view PRMW's ratings. Get all the ratings of KO <a href="https://stocknews.com/stock/KO/">here</a>.
The Winner
The beverage industry is expected to thrive in the coming years amid innovations and expanding options. Industry players such as PRMW and KO are well-positioned to benefit from these industry tailwinds.
However, PRMW's higher profitability and affordability makes it the better buy here.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Beverages industry <a href="https://stocknews.com/category/beverages/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
PRMW shares were trading at $16.22 per share on Tuesday afternoon, up $0.26 (+1.63%). Year-to-date, PRMW has gained 7.77%, versus a 6.39% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/prmw-ko-coca-cola-company-ko-vs-primo-water-prmw-which-beverage/>Coca-Cola Company (KO) vs. Primo Water (PRMW) - Which Beverage Stock Has More Profit Potential?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Coca-Cola Company (KO) vs. Primo Water (PRMW) - Which Beverage Stock Has More Profit Potential?