Vital Farms Q3 revenue misses estimates; cuts FY forecast
Overview
U.S. pasture-raised egg seller's Q3 revenue fell 8.4% yr/yr, slightly missing analyst expectations
Q3 adjusted EBITDA beat analyst estimates despite higher input costs and unfavorable sales mix
Company cut full-year 2026 outlook and withdrew long-term 2030 financial targets
Outlook
Company sees 2026 net revenue of around $730 mln, down from prior $775-800 mln outlook
Company expects 2026 adjusted EBITDA loss of about $15 mln, versus prior view of up to $10 mln gain
Says updated FY outlook reflects later-than-anticipated timing of new distribution placements and no seasonal uplift in demand or egg pricing
Vital Farms withdraws previously issued fiscal 2030 financial targets
Result Drivers
PRICE AND VOLUME DECLINES - Co said lower prices and reduced volumes, particularly in retail, drove revenue down yr/yr
HIGHER COSTS AND UNFAVORABLE MIX - Higher input and production costs and oversupply led to more low-margin sales, reducing gross profit
DISTRIBUTION GAINS AND COST ACTIONS - Co cited expanded distribution and efforts to reduce supply and costs as supporting sequential improvement
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $182.16 mln | $182.78 mln (10 Analysts) |
Q3 Loss Per Share | $0.15 | ||
Q3 Net Loss | $6.46 mln | ||
Q3 Adjusted EBITDA | Beat | $1.50 mln | $1.16 mln (9 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for Vital Farms Inc is $11.00, about 19.8% above its November 2 closing price of $9.18
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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.)