Freshpet (NASDAQ:FRPT) shares surged more than 12% Monday after the company reported its latest quarterly earnings, topping analyst consensus expectations.
The pet food company reported a third-quarter loss per share of $0.15, $0.01 better than the analyst estimate of a loss per share of $0.16. Revenue for the quarter came in at $200.6 million, up 32.6% YoY, and above the consensus estimate of $194.45 million.
"Fiscal year 2023 is shaping up to be the kind of year we had hoped it would – delivering strong top-line and bottom-line growth that puts us ahead of the pace needed to deliver our 2027 goals," said Billy Cyr, Freshpet’s Chief Executive Officer. “Our strengthened organization is delivering improved margins from better operational performance in logistics, input costs and quality while maintaining strong volume-based revenue growth."
The company noted it has "real momentum" as it enters the fourth quarter and raised its full-year net sales and adjusted EBITDA guidance.
Freshpet sees FY2023 revenue at $755 million, an increase from its previous guidance of $750 million and above the consensus of $750.9 million. Adjusted EBITDA is now seen at $62 million, up from the prior guidance of at least $55 million.
Reacting to the report, analysts at Stifel maintained a Buy rating and $81 price target on the stock, stating they view the company's "sales upside as most notable as investors have been focused on the weakening 2-year volume CAGR in scanner data, with untracked channels adding to growth."
The "increased adjusted EBITDA reflects improving costs and management focus on profitability," the analysts added.