Freshpet Q3 sales beat estimates on volume gains; raises outlook
Overview
U.S. fresh pet food maker's Q3 net sales rose 10%, beating analyst expectations
Adjusted EPS for Q3 was $0.58; no analyst estimate provided for comparison
Company raised full-year 2026 net sales growth and adjusted EBITDA guidance
Outlook
Freshpet raises 2026 net sales growth outlook to 12%-13% from 10%-12%
Company lifts 2026 adj EBITDA guidance to $215 mln-$220 mln from $210 mln-$220 mln
Freshpet expects positive free cash flow in 2026, with capex of $125 mln-$150 mln
Result Drivers
VOLUME GAINS - Co said Q3 net sales increase was primarily driven by volume gains of 10%
MARGIN EXPANSION - Gross margin rose due to improved leverage on plant expenses, reduced quality costs and lower input costs
HIGHER LOGISTICS COSTS - SG&A as a percentage of net sales increased mainly due to increased logistics costs and variable compensation accrual
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $317.80 mln | $312.04 mln (17 Analysts) |
Q3 EPS | $0.58 | ||
Q3 Net Income | $29.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Freshpet, Inc. is $80.00, about 14.9% above its November 3 closing price of $69.60
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 31 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)