• National Beverage Corp. (NASDAQ:FIZZ) reports a 5.5% increase in net sales and an 8.6% rise in operating income in the fourth quarter.
• The company offers an estimated forward yield of 4.6% through special dividends, targeting income-focused investors.
• Despite market share pressure and slow revenue growth, National Beverage's new stock buyback plan and improving margins are expected to support earnings per share growth.

National Beverage Corp. (NASDAQ: FIZZ) is a well-known player in the beverage industry, offering a diverse range of products such as LaCroix, Shasta, and Faygo. The company focuses on health-conscious consumers with its sparkling waters, energy drinks, and juices, primarily operating in the United States and Canada. Despite facing competition, National Beverage continues to maintain a strong market presence.

The consensus price target for FIZZ has shown stability over the past quarter, with an average target of $35, consistent with the previous month. However, it has decreased slightly from $37.5 last year. This stability suggests that analysts have a consistent outlook on the company's performance, although there are some concerns that may have led to the slight decrease in the target price over the year.

National Beverage offers an estimated forward yield of 4.6% through special dividends, appealing to income-focused investors despite inconsistent payouts. The company's core brand, LaCroix, faces market share pressure from larger competitors, and revenue growth has slowed to low single digits. However, management's new stock buyback plan and improving margins support earnings per share growth.

In the fourth quarter, National Beverage reported a 5.5% increase in net sales, reaching $314 million, with operating income rising by 8.6% to $57.5 million. Net income increased to $44.8 million, and earnings per share reached $0.48. For the fiscal year, net sales climbed to $1.2 billion, with a gross margin of 37.0% of sales. Operating income for the year increased by 7.8% to $235 million.

Despite challenges such as wildfires in California and severe winter weather, National Beverage has maintained stable earnings due to strong pricing power and cost deflation in packaging. The launch of a new LaCroix flavor is expected to contribute to growth. UBS has set a price target of $42 for the stock, indicating positive expectations for the company's future performance.