Egg and butter company Vital Farms (NASDAQ:VITL) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Vital Farms beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $147.4 million, up 38.5% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.
Is Vital Farms a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vital Farms’s revenue to grow 31.6% year on year to $145.3 million, improving from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
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. Vital Farms has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.9% on average.
Looking at Vital Farms’s peers in the perishable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fresh Del Monte Produce delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 3%, and Freshpet reported revenues up 26.3%, topping estimates by 2%. Fresh Del Monte Produce traded up 9% following the results while Freshpet was also up 13.3%.
Read our full analysis of Fresh Del Monte Produce’s results here and Freshpet’s results here.
Investors in the perishable food segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Vital Farms is down 6.3% during the same time and is heading into earnings with an average analyst price target of $44.60 (compared to the current share price of $36).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.