I originally put Freshpet Inc. (FRPT) in the Danger Zone on February 2, 2022 and most recently reiterated my bearish opinion on the stock in October 17, 2022.
Freshpet shares plunged due to slower growth, operating losses, and reduced full-year guidance, raising concerns about high valuations and capital spending requirements. Freshpet's long-term potential in the premium pet food market remains, but high expectations and recent growth slowdown warrant caution. Despite impressive historical growth, Freshpet's recent financials show a decline in operating momentum, with increased marketing expenses and legal bills impacting profitability.
Freshpet's stock has dropped from $135+ to $79, making it less overvalued, but profitability remains a significant concern despite strong revenue growth. February's sell-off began after missing estimates, and while revenue growth is impressive, the lack of earnings growth is troubling. Freshpet's Q1 results missed EPS estimates but exceeded revenue expectations, raising concerns about market enthusiasm for revenue growth without profitability.
FRPT's fiscal first-quarter results reflect higher year-over-year sales. Also, the adjusted gross margin expands 40 basis points to 45.7%.
Freshpet, Inc. (NASDAQ:FRPT ) Q1 2025 Earnings Conference Call May 5, 2025 8:00 AM ET Company Participants Rachel Ulsh - Vice President, Investor Relations Billy Cyr - Chief Executive Officer Todd Cunfer - Chief Financial Officer Scott Morris - President & Co-Founder Conference Call Participants Ken Goldman - JPMorgan Peter Benedict - Baird Bill Chappell - Truist Securities Brian Holland - D.A. Davidson Rupesh Parikh - Oppenheimer & Company Robert Moskow - TD Cowen Jon Andersen - William Blair Michael Lavery - Piper Sandler Steve Powers - Deutsche Bank Kaumil Gajrawala - Jefferies Tom Palmer - Citigroup Operator Greetings.
Freshpet (FRPT) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.21 per share a year ago.
The latest trading day saw Freshpet (FRPT) settling at $73.54, representing a -0.5% change from its previous close.
Freshpet (FRPT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Freshpet (FRPT) closed the most recent trading day at $72.34, moving -1.26% from the previous trading session.
The stock market in general traded listlessly on Tuesday, but the trajectory of Freshpet (FRPT -2.87%) shares was particularly uninspiring. On the back of an analyst's price-target cut, the next-generation pet care specialist's stock closed the day nearly 3% lower.
In the most recent trading session, Freshpet (FRPT) closed at $86.64, indicating a +0.25% shift from the previous trading day.
Onetime investors' pet stock Freshpet (FRPT -0.31%) wasn't such a good boy over the past few days. On the back of a recommendation downgrade from one analyst and price target cuts from two others, investors sold out of the stock in recent trading sessions.