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Freshpet Rallies Despite Q4 Earnings, Revenue Miss

Published 01/03/2022, 20:18
© Reuters.
FRPT
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By Sam Boughedda

Investing.com -- Freshpet Inc (NASDAQ:FRPT) reported its financial results for the fourth-quarter and full-year Monday after the close, missing both revenue and earnings per share estimates.

The pet food company's fourth-quarter report revealed revenue of $115.87 million, falling short of $116.63 million consensus estimates. In addition, it reported a loss per share of 21 cents, which is wider than the previous year's 8 cent a share loss and below expectations of 13 cents a share.

However, revenue increased 37.1% compared to the previous year, marking the company's fifth consecutive year of net sales growth acceleration. The company said its net sales were driven by velocity, distribution gains, and innovation.

Full-year 2021 revenue followed a similar growth pattern, increasing 33.5% to $425.5 million.

"We finally have the capacity needed to support Freshpet's significant topline growth potential - while also improving the reliability of our operations," said Billy Cyr, Freshpet's chief executive officer.

"Over the past two years, we have invested in significant new capacity and the talent to support it. We plan to use that capacity wisely -- budgeting conservatively to ensure the reliability of our operations," added Cyr.

Despite the Q4 miss, Freshpet shares are trading 16% above Monday's close, with investors encouraged by the company's expectations of full-year 2022 revenue coming in at $575 million, above consensus.

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