The shares of Freshpet have experienced a significant increase after the company exceeded analysts' expectations in its third-quarter results and raised its full-year guidance.
At the start of trading, the stock witnessed an 18% surge, reaching $68.86. Year-to-date, the shares have risen by a noteworthy 31%.
Freshpet now anticipates sales of approximately $755 million for 2023, which is $5 million higher than its previous projection. Additionally, the company has raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to around $62 million for the year. This is a significant increase from the previous guidance of at least $55 million.
Strong Third-Quarter Performance
Despite posting a loss of $7.2 million, or 15 cents per share, during the third quarter, Freshpet's results were still better than the loss of $18.4 million, or 39 cents per share, recorded in the same period last year. Analysts polled by FactSet had predicted a loss of 16 cents per share.
Impressive Sales Figures
Sales for the quarter reached $200.6 million, surpassing the $151.3 million reported in the year-ago quarter. Analysts anticipated sales of $194.5 million.
Key Drivers of Growth
The company's top-line growth was primarily fueled by increased prices and volumes. Furthermore, operational performance in logistics improved, contributing to stronger margins. Additionally, lower input costs played a role in margin enhancement.
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