Freshpet (NASDAQ:FRPT) soared in pre-market trading after the company reported better-than-expected Q1 results. The pet foods company posted net sales of $223.8 million, a jump of 33.6% year-over-year, beating consensus estimates of $216.4 million.
More importantly, Freshpet swung to a profit in Q1 of $0.37 per diluted share, compared to a loss of $0.52 per share in the same period last year. Analysts were expecting the company to report a Q1 loss of $0.22 per share.
Moreover, Freshpet’s gross profit margin expanded to 39.4% in the first quarter, up from 30.3% in the same period last year. Gross margin, calculated as gross profit as a percentage of net sales, expanded mainly due to higher plant efficiency and reduced input costs relative to sales.
Freshpet’s FY24 Outlook
Looking forward, Freshpet has forecasted FY24 net sales of at least $950 million, up by 24% year-over-year. Additionally, the company raised its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) guidance to $120 million, compared to its prior forecast in the range of $100 to $110 million.
Analysts Remain Bullish on FRPT
According to the TipRanks investment research tool, “Bulls Say, Bears Say,” which provides stock analysis insights for investors, Wall Street analysts are bullish on FRPT. They are upbeat about the company’s strong quarterly results and its expanding market reach and “strategic retail partnerships.”
Is FRPT a Buy?
Analysts remain bullish about FRPT stock, with a Strong Buy consensus rating based on 12 Buys and two Holds. Over the past year, FRPT has increased by more than 60%, and the average FRPT price target of $122.77 implies an upside potential of 12% from current levels. However, these analyst ratings are likely to change following FRPT’s Q1 results today.
