Pet food company Freshpet (NASDAQ: FRPT) will be reporting results this Wednesday before market hours. Here’s what to look for.
Freshpet beat analysts’ revenue expectations last quarter, reporting revenues of $297.6 million, up 13.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS 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 10.4% year on year, slowing from the 12.5% 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 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 2.7% following the results.
Read our full analysis of Del Monte Corporation’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 1.4% on average over the last month. Freshpet is up 10.3% during the same time and is heading into earnings with an average analyst price target of $81.50 (compared to the current share price of $59.64).
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