Why Freshpet Stock Jumped Today

What happened

Shares of Freshpet (NASDAQ: FRPT) have jumped today, up by 4% as of 12:15 p.m. EDT, after the company reported second-quarter earnings. The special pet food maker beat expectations and raised its guidance for full-year results.

So what

Revenue in the second quarter increased 33% to $80 million, which led to net income of $200,000, or breakeven per share. Consensus estimates called for $77.1 million in sales and a net loss of $0.06 per share. The consumer staples company, which makes various pet food and treats, said growth was driven in part by expanded distribution.

Dog eating out of a bowl

Image source: Getty Images.

"When the COVID crisis struck in March, our 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 and we converted that growth into a sharp improvement in our bottom line," CEO Billy Cyr said in a statement. "By focusing our efforts on the safety and wellbeing of our team members, we have been able to rebuild supply, replenish stores and convert more families to Freshpet at a time when our pets mean so much to us."

Now what

Freshpet boosted its outlook for 2020 and now expects more than $320 million in revenue, up from its prior forecast for sales to exceed $310 million. Wall Street is currently modeling for $312 million in sales this year. On top of that, adjusted EBITDA for the year should now be greater than $46 million, up from the prior guidance of exceeding $44 million.

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


Evan Niu, CFA 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.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.