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AUSTIN, Texas - On Tuesday, Vital Farms (NASDAQ:VITL) reported third-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by strong volume growth and operational improvements.
The ethically produced food company’s shares jumped 8.8% in pre-market trading after the results.
The company posted adjusted earnings of $0.36 per share, significantly beating the analyst estimate of $0.29. Revenue reached a record $198.9 million, up 37.2% YoY and surpassing the consensus estimate of $191.32 million. The impressive growth was attributed to both volume increases and favorable pricing.
"Our third quarter results demonstrate the power of disciplined execution across our business," said Russell Diez-Canseco, Vital Farms’ President and CEO. "This values-aligned approach is fueling strong growth as we build momentum heading into Q4 and lay the foundation for long-term success."
Vital Farms raised its fiscal 2025 revenue guidance to at least $775 million, up from its previous outlook of at least $770 million and above the analyst consensus of $772.6 million. The company also increased its adjusted EBITDA guidance to at least $115 million, up from its previous target of at least $110 million.
Gross margin improved to 37.7% from 36.9% in the year-ago period, driven by favorable pricing, commodity costs, and scale benefits. The company added approximately 75 family farms during the quarter, expanding its network to 575 farms.
Vital Farms remains confident in achieving its $1 billion revenue target by 2027, supported by its strong balance sheet with $145.1 million in cash and no outstanding debt. The company also highlighted operational milestones including the implementation of a new ERP system and the addition of a third production line at its Egg Central Station facility.
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