Freshpet Inc.’s stock was up by 17% on Monday to its highest level in nearly two years after the pet-food company’s fourth-quarter revenue and profit topped analyst estimates.
Freshpet
FRPT,
said it earned $15.66 million, or 31 cents a share in the fourth quarter. In the year-ago period, Freshpet lost $2.59 million, or 6 cents a share.
Analysts estimated Freshpet would earn 7 cents a share in the latest quarter, according to FactSet data.
Freshpet cited higher sales, increased gross margin, and reduced logistics costs as a percentage of net sales for its higher profit. These factors were partially offset by increased media spending of $10.4 million and selling, general and administrative expenses.
Freshpet’s sales climbed to $215.4 million from $165.8 million, ahead of the FactSet consensus estimate of $204.6 million.
Looking ahead, Freshpet expects 2024 sales of about $950 million, ahead of the analyst estimate of $945.5 million.
Freshpet’s stock was up by $16.83 to $108.83, its highest level since April, 2022.
Benchmark analyst John Lawrence reiterated a “buy” rating on the stock and said Freshpet’s results marked “another quarter where management has solidly executed the playbook with strong sales growth and much improved margins,” according to a research note.
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