Pet food company Freshpet (NASDAQ: FRPT) will be reporting earnings this Wednesday before market open. Here’s what you need to know.
Freshpet beat analysts’ revenue expectations last quarter, reporting revenues of $305.6 million, up 15.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
Is Freshpet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Freshpet’s revenue to grow 8.1% year on year, slowing from the 14% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Freshpet has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Freshpet’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Pilgrim's Pride’s revenues decreased 2.2% year on year, missing analysts’ expectations by 0.8%, and Cal-Maine reported a revenue decline of 41.5%, falling short of estimates by 3.9%. Pilgrim's Pride traded up 4.7% following the results while Cal-Maine was down 4%.
Read our full analysis of Pilgrim's Pride’s results here and Cal-Maine’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 8.3% on average over the last month. Freshpet is up 13.6% during the same time and is heading into earnings with an average analyst price target of $83.19 (compared to the current share price of $69.70).
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