Markets

Freshpet Sees Q2 Sales Jump 33%

Investors appear to be purring over Freshpet's (NASDAQ: FRPT) Q2 2020 results, which were reported on Monday after market close. The company had $80 million in sales, a 33.2% jump year over year. That put net income at $200,000, barely reaching positive territory but surpassing the $5.7 million net loss in the prior-year quarter.

Revenue beat analysts' consensus by $2.88 million. Earnings per share broke even for the quarter, also beating analysts, who anticipated a $0.05 loss per share, according to Zacks Equity Research. The break-even EPS number once again put the company ahead of last year's performance, when Q2 saw a $0.16 net loss per share.

Pet food and chews.

Image source: Getty Images.

Freshpet also revised its fiscal-year 2020 outlook upward in the earnings release, raising its expected full-year net sales from $310 million to $320 million. That would be more than 30% higher than fiscal 2019. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is forecast to be 59% higher than 2019's EBITDA.

CEO Billy Cyr credited a flexible business model and employee initiative for the improvement, noting the employee team "quickly pivoted to address the changing environment, and that enabled us to deliver very robust results -- with the second quarter reflecting our strongest sales growth in years." Increased sales drove part of the gains, with the rest resulting from a change in sales mix as consumers began buying higher-priced pet foods, along with new products.

Investors seem to think the company's strong results are the cat's meow. Shares rose on Monday, and were up more than 5% in morning trading today.

10 stocks we like better than Freshpet
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Freshpet wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Freshpet. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FRPT

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More