Freshpet (NASDAQ:FRPT) Announces Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Freshpet reported an earnings per share (EPS) of $0.33 for the quarter, exceeding the consensus estimate of $0.13 by $0.20.
• The company's stock is currently trading down 3.6% after the earnings announcement, with a market capitalization of $3.21 billion.
• Analysts have mixed ratings on Freshpet, with two sell ratings, five hold ratings, and eight buy ratings, resulting in an average target price of $119.14.

Freshpet (NASDAQ:FRPT - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.21, Zacks reports. Freshpet had a return on equity of 3.16% and a net margin of 1.54%. The firm had revenue of $264.69 million for the quarter, compared to the consensus estimate of $269.75 million. During the same quarter in the prior year, the business earned ($0.03) EPS. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. Freshpet updated its FY 2025 guidance to EPS.

Freshpet Stock Performance

Shares of Freshpet stock traded up $4.14 on Monday, reaching $69.99. 3,524,959 shares of the company traded hands, compared to its average volume of 1,354,197. Freshpet has a 52 week low of $64.69 and a 52 week high of $164.07. The company has a 50 day moving average of $73.36 and a 200 day moving average of $91.42. The firm has a market capitalization of $3.41 billion, a PE ratio of 225.77, a PEG ratio of 1.31 and a beta of 1.77. The company has a debt-to-equity ratio of 0.41, a current ratio of 4.91 and a quick ratio of 3.92.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on FRPT. JPMorgan Chase & Co. cut their price target on Freshpet from $91.00 to $85.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 6th. UBS Group initiated coverage on Freshpet in a report on Monday, June 16th. They set a "sell" rating and a $65.00 price target for the company. Wells Fargo & Company dropped their price target on shares of Freshpet from $100.00 to $88.00 and set an "overweight" rating for the company in a research report on Wednesday, July 9th. Robert W. Baird decreased their price objective on shares of Freshpet from $125.00 to $115.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 6th. Finally, TD Cowen cut shares of Freshpet from a "buy" rating to a "hold" rating and set a $96.00 price objective on the stock. in a research note on Wednesday, May 28th. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat.com, Freshpet has an average rating of "Hold" and a consensus price target of $119.14.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Jones Financial Companies Lllp boosted its holdings in Freshpet by 734.1% in the 1st quarter. Jones Financial Companies Lllp now owns 1,810 shares of the company's stock worth $151,000 after buying an additional 1,593 shares during the period. United Services Automobile Association bought a new position in Freshpet in the 1st quarter worth approximately $247,000. Finally, Royal Bank of Canada boosted its holdings in Freshpet by 86.3% in the 1st quarter. Royal Bank of Canada now owns 67,623 shares of the company's stock worth $5,624,000 after buying an additional 31,334 shares during the period.

About Freshpet

Freshpet, Inc, together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online.