Egg and butter company Vital Farms (NASDAQ: VITL) will be reporting results this Thursday morning. Here’s what you need to know.
Vital Farms beat analysts’ revenue expectations last quarter, reporting revenues of $187.2 million, up 15.4% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Vital Farms 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 Vital Farms’s revenue to decline 10.8% year on year, a reversal from the 25.4% 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. Vital Farms has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Vital Farms’s peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Del Monte Corporation delivered year-on-year revenue growth of 3.1%, missing analysts’ expectations by 6.6%, and Tyson Foods reported flat revenue, falling short of estimates by 1%. Del Monte Corporation traded up 2.9% following the results while Tyson Foods was also up 1.3%.
Read our full analysis of Del Monte Corporation’s results here and Tyson Foods’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 2.8% on average over the last month. Vital Farms is down 5.1% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $12.18).
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