Freshpet Profits: What to Look for in FRPT

Pet food company Freshpet (NASDAQ:FRPT) is set to report earnings tomorrow morning. Here’s what to watch for.

Freshpet beat analyst revenue expectations by 3.6% in the latest quarter, reporting revenue of $223.8 million, up 33.6% year over year. It was a solid quarter for the company, with an impressive beat on analyst earnings estimates.

Is Freshpet a buy or sell in terms of earnings? Read our full analysis here, it’s free.

Analysts are expecting Freshpet’s revenue to rise 26% year over year this quarter to $231 million, in line with the 25.6% growth the company saw in the same quarter last year. Adjusted loss is expected to be -$0.06 per share.

Analysts covering the company have generally reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its course toward earnings. Freshpet has missed Wall Street revenue estimates twice in the past two years.

Looking at Freshpet’s competitors in the perishables segment, some have already reported second-quarter results, giving us a hint of what to expect. Pilgrim’s Pride reported year-over-year revenue growth of 5.8%, missing analysts’ expectations of 1.4%, and Cal-Maine reported a revenue decline of 7%, missing estimates by 1.8%. Pilgrim’s Pride rose 2.3% after the results, while Cal-Maine also rose 3.1%.

Read our full analysis of Pilgrim’s Pride’s results here and Cal-Maine’s results here.

Perishable food investors are in positive spirits, with shares up an average of 4% over the past month. Freshpet is down 9.8% in the same time frame and is heading for profit with an average analyst price target of $139.4 (compared to the current share price of $122.3).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading near all-time highs, we prefer lesser-known (but still profitable) semiconductor stocks benefiting from AI growth. Click here to access our free report on our favorite semiconductor growth story.