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Freshpet Q3 sales beat estimates on volume gains; raises outlook

By Reuters News


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


Reuters Recommended Reads

  • Nov 3 - Vital Farms Q3 revenue misses estimates; cuts FY forecast

  • Nov 3 - First Watch Q3 revenue slightly beats estimates on new restaurant openings

  • Nov 3 - Yum Brands tops Q3 adjusted EPS estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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