BEDMINSTER, N.J. - Freshpet, Inc. (NASDAQ:FRPT) saw its stock jump 2.48% after reporting third-quarter earnings that beat analyst expectations and raising its full-year guidance. The pet food company delivered robust revenue growth and significant margin expansion in the quarter.
Freshpet reported third-quarter adjusted earnings per share of $0.24, surpassing the analyst consensus of $0.15. Revenue for the quarter came in at $253.4 million, up 26.3% YoY and ahead of estimates of $248.21 million. This marked the company's 25th consecutive quarter of over 25% YoY net sales growth.
The company's gross margin improved substantially to 40.4%, compared to 33% in the same quarter last year. Adjusted gross margin reached 46.5%, up from 40.2% in the prior-year period.
Freshpet raised its full-year 2024 guidance, now expecting revenue of approximately $975 million, up from its previous forecast of at least $965 million and above the analyst consensus of $969.5 million. The company also increased its adjusted EBITDA guidance to at least $155 million, up from the previous estimate of at least $140 million.
CEO Billy Cyr commented on the results, stating, "Our third quarter results demonstrate the strength and consistency of both net sales and profitability growth we have been striving to deliver...This further strengthens our confidence in our ability to meet or exceed our 2027 goals."
The company reported net income of $11.9 million for the quarter, a significant improvement from a net loss of $7.2 million in the same period last year. Freshpet attributed the strong performance to volume gains, lower input costs, and reduced quality costs.
For the first nine months of 2024, Freshpet generated $103.9 million in cash from operations, compared to $39 million in the prior-year period, highlighting improved cash generation.
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