Vital Farms stock surges as earnings beat estimates, raises guidance

Published 07/08/2025, 14:20
Vital Farms stock surges as earnings beat estimates, raises guidance

Investing.com -- Vital Farms, Inc. (NASDAQ:VITL) shares jumped 6.4% after the ethically produced food company reported second quarter earnings that significantly exceeded analyst expectations and raised its full-year outlook.

The company posted adjusted earnings of $0.36 per share for the second quarter, surpassing the analyst consensus of $0.27 by 33%. Revenue climbed 25.4% YoY to $184.8 million, well above the $170.29 million analysts had projected. The strong performance was driven by both volume growth and strategic pricing actions across the company’s egg portfolio.

"We delivered second quarter results that exceeded our initial expectations, demonstrating the overall strength of our business model and expanding year-over-year consumer awareness of our strong brand," said Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer.

Following the strong results, Vital Farms raised its fiscal 2025 revenue guidance to at least $770 million, up from its previous forecast of at least $740 million and above the analyst consensus of $745.4 million. The company also increased its Adjusted EBITDA guidance to at least $110 million, up from its previous target of at least $100 million.

Gross margin was 38.9% in the quarter, slightly below the 39.1% reported in the same period last year, as investments in scaling the business were partially offset by favorable pricing.

The company reported significant progress in its supply chain expansion, adding 50 farms in the quarter to reach over 500 family farms with 9 million hens under contract. Vital Farms also broke ground on its Seymour facility to bring additional production capacity online in 2027 and continued installing a third production line in Springfield scheduled for completion in the fourth quarter.

The company increased its capital expenditure outlook to $90-110 million from $50-60 million to accelerate facility buildout, positioning itself to meet growing demand and achieve its $1 billion revenue target by 2027.

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