Pet food company Freshpet (NASDAQ: FRPT) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Freshpet met analysts’ revenue expectations last quarter, reporting revenues of $285.2 million, up 8.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ gross margin 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 10.6% year on year, slowing from the 17.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 perishable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cal-Maine’s revenues decreased 53% year on year, beating analysts’ expectations by 3.8%, and Tyson Foods reported revenues up 4.4%, topping estimates by 1%. Cal-Maine traded down 1.3% following the results.
Read our full analysis of Cal-Maine’s results here and Tyson Foods’s results here.
Investors in the perishable food segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Freshpet is up 7.8% during the same time and is heading into earnings with an average analyst price target of $84.44 (compared to the current share price of $63.62).
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