Egg and butter company Vital Farms (NASDAQ: VITL) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
Vital Farms beat analysts’ revenue expectations last quarter, reporting revenues of $198.9 million, up 37.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
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 grow 28.5% year on year, improving from the 22.2% 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 to 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 Q4 results, giving us a hint as to what we can expect. Freshpet delivered year-on-year revenue growth of 8.6%, meeting analysts’ expectations, and Fresh Del Monte Produce reported flat revenue, topping estimates by 0.7%. Freshpet traded up 8.5% following the results while Fresh Del Monte Produce was also up 5%.
Read our full analysis of Freshpet’s results here and Fresh Del Monte Produce’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 3.7% on average over the last month. Vital Farms is down 4.9% during the same time and is heading into earnings with an average analyst price target of $49.45 (compared to the current share price of $26.23).
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