Shares of pet food manufacturer Freshpet rose sharply today, rising 18% to $68.86 in early trading. The increase comes after the company adjusted its full-year 2023 guidance and its third-quarter business results were better than expected.
The company now expects 2023 revenue of approximately $755 million, an increase of $5 million from its previous forecast. In addition, Freshpet also expects adjusted EBITDA of approximately $62 million, exceeding previous expectations.
Although it lost $7.2 million (15 cents per share) in the third quarter, the company managed to minimize the severity of the loss compared to last year’s third-quarter loss of $18.4 million. The latest loss was also below FactSet’s estimate of a loss of 16 cents per share.
In addition, Freshpet’s third-quarter revenue increased significantly, from $151.3 million in the third quarter of last year to $200.6 million. That beat FactSet forecasts and is up 31% year to date. The increase in sales was attributed to higher prices, higher volumes, improved logistics performance and lower input costs.
This series of positive financial results demonstrates Freshpet’s strong operating performance and strategic decisions, allowing it to effectively navigate market dynamics and achieve promising results.
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According to InvestingPro, Freshpet (FRPT) has moderate operating liabilities, with current assets exceeding its short-term debt. This is a positive sign of the company’s financial health and may aid its ability to effectively navigate market dynamics.
InvestingPro data shows that the company has a market value of $3.38 billion and a negative price-to-earnings ratio of -52.86. The company’s revenue for the trailing 12 months ended in the second quarter of 2023 was $668.02 million, an increase of 33.17%. However, it’s worth noting that the company’s share price has fallen significantly over the past three months, in line with one of InvestingPro Tips.
Finally, it’s important to highlight that InvestingPro provides Freshpet and other companies with over 10 additional tips to gain a comprehensive understanding of their financial performance and market dynamics. This makes it a valuable tool for anyone interested in investing or keeping up with the financial markets.
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