Freshpet shares dip as Q4 earnings miss estimates

Published 20/02/2025, 12:46
Freshpet shares dip as Q4 earnings miss estimates

BEDMINSTER, N.J. - Freshpet, Inc. (NASDAQ:FRPT) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down -1.82% in pre-market trading on Thursday.

The pet food company posted adjusted earnings per share of $0.36, missing the consensus estimate of $0.40. Revenue for the quarter came in at $262.7 million, slightly below analysts’ projections of $263.94 million. However, sales still grew 22% YoY from $215.4 million in the same period last year.

"Fiscal year 2024 was a breakout year for Freshpet. We continued to deliver the exceptional net sales growth investors have come to expect from Freshpet but also delivered very strong profit improvements - and even exceeded some of the fiscal year 2027 targets we set two years ago," said Billy Cyr, Freshpet’s CEO.

For the full year 2024, Freshpet reported net sales of $975.2 million, up 27.2% from 2023. The company also achieved net income of $46.9 million, compared to a net loss of $33.6 million in the prior year.

Looking ahead, Freshpet provided guidance for fiscal year 2025, projecting revenue between $1.18 billion and $1.21 billion. This outlook falls slightly below the current analyst consensus of $1.216 billion. The company also reaffirmed its long-term revenue target of $1.8 billion for fiscal year 2027.

Freshpet’s gross margin improved significantly in Q4, reaching 42.5% compared to 34.6% in the same quarter last year. The company attributed this to lower input costs, reduced quality costs, and improved leverage on plant expenses.

Despite the earnings miss, Freshpet highlighted its strong cash flow improvements, expressing confidence in becoming free cash flow positive by 2026 and able to self-fund future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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