Core Insights - Freshpet, Inc. reported a breakout year in fiscal 2024, achieving significant net sales growth and profit improvements, including positive net income for the first time [3][8] - The company anticipates being free cash flow positive by 2026 and has raised long-term profit margin targets due to operational efficiencies [3][17] - Freshpet's strong performance is attributed to volume gains and improved gross margins, driven by lower input costs and better plant expense leverage [4][11] Financial Highlights for Q4 2024 - Net sales increased by 22.0% to $262.7 million compared to $215.4 million in the prior year [4][8] - Gross profit reached $111.6 million, representing a gross margin of 42.5%, up from 34.6% in the prior year [5][8] - Adjusted EBITDA for Q4 2024 was $52.6 million, compared to $31.3 million in the prior year [9][8] Financial Highlights for Full Year 2024 - Full year net sales rose by 27.2% to $975.2 million, driven by volume gains of 26.1% [10][8] - Gross profit for the year was $396.0 million, with a gross margin of 40.6%, up from 32.7% in the previous year [11][8] - Net income improved to $46.9 million from a net loss of $33.6 million in the prior year [13][8] SG&A and Adjusted Metrics - Selling, general and administrative expenses (SG&A) for Q4 2024 were $92.2 million, up from $59.7 million in the prior year, with SG&A as a percentage of net sales increasing to 35.1% [6][8] - Adjusted SG&A for Q4 2024 was $73.6 million, or 28.0% of net sales, compared to 26.6% in the prior year [6][8] - Adjusted Gross Profit for the full year was $453.5 million, or 46.5% of net sales, compared to 40.0% in the prior year [11][8] Cash Flow and Balance Sheet - Cash provided by operating activities for the year was $154.3 million, an increase of $78.3 million compared to the prior year [8][15] - As of December 31, 2024, the company had cash and cash equivalents of $268.6 million and $395.2 million in outstanding debt [15][8] 2025 and 2027 Outlook - For full year 2025, Freshpet expects net sales in the range of $1.18 billion to $1.21 billion, representing a growth of 21% to 24% from 2024 [17][18] - The company anticipates Adjusted EBITDA of at least $210 million for 2025 [18][8] - Long-term guidance for 2027 remains unchanged with expected net sales of $1.8 billion [17][8]

Financial Performance - Net sales for Q4 2024 increased by 22.0% to $262.7 million, up from $215.4 million in the prior year period, primarily driven by volume gains of 20.7%[4] - Gross profit for Q4 2024 was $111.6 million, representing a gross margin of 42.5%, compared to $74.6 million and 34.6% in the prior year period[5] - Full year 2024 net sales reached $975.2 million, a 27.2% increase from $766.9 million in the prior year, driven by volume gains of 26.1%[7] - Full year 2024 net income was $46.9 million, a significant improvement from a net loss of $33.6 million in the prior year[8] - Adjusted EBITDA for Q4 2024 was $52.6 million, compared to $31.3 million in the prior year period, reflecting strong operational performance[7] - Net sales for the year ended December 31, 2024, increased to $975.2 million, a 27.2% increase from $766.9 million in 2023[27] - Gross profit for the year ended December 31, 2024, was $396.0 million, representing a 58.0% increase from $250.9 million in 2023[27] - Adjusted gross profit as a percentage of net sales improved to 46.5% for the year ended December 31, 2024, compared to 40.0% in 2023[30] - The company reported a net income of $46.9 million for the year ended December 31, 2024, compared to a net loss of $33.6 million in 2023[29] - Adjusted EBITDA for Q4 2024 was $52,633,000, a 67.8% increase from $31,328,000 in Q4 2023[32] - Adjusted EBITDA as a percentage of net sales increased to 20.0% in Q4 2024 from 14.5% in Q4 2023[32] Future Projections - For full year 2025, the company expects net sales in the range of $1.18 billion to $1.21 billion, representing a 21% to 24% increase from 2024[16] - The company anticipates Adjusted EBITDA of at least $210 million for full year 2025[16] - The company is updating its long-term guidance for 2027, now expecting an Adjusted Gross Margin of 48%, up from 45% previously[16] Expenses and Liabilities - Selling, general and administrative expenses (SG&A) for Q4 2024 were $92.2 million, an increase from $59.7 million in the prior year period, with SG&A as a percentage of net sales rising to 35.1%[6] - The company’s selling, general, and administrative expenses for the year ended December 31, 2024, were $358.0 million, up from $281.3 million in 2023[27] - SG&A expenses for Q4 2024 were $92,223,000, up from $59,680,000 in Q4 2023, representing a 54.7% increase[31] - Adjusted SG&A expenses as a percentage of net sales improved to 28.0% in Q4 2024 from 26.6% in Q4 2023[31] - Total liabilities rose slightly to $519.5 million in 2024, compared to $511.0 million in 2023[25] Cash and Assets - As of December 31, 2024, the company had cash and cash equivalents of $268.6 million and $395.2 million of debt outstanding[9] - Cash and cash equivalents decreased to $268.6 million as of December 31, 2024, from $296.9 million at the end of 2023[29] - Total assets increased to $1.575 billion as of December 31, 2024, up from $1.464 billion in 2023[25] Investments and Other Costs - The company invested $187.1 million in property, plant, and equipment during the year ended December 31, 2024[29] - Depreciation and amortization expense for the year ended December 31, 2024, was $70,803,000, up from $57,058,000 in 2023[32] - Non-cash share-based compensation for the year ended December 31, 2024, was $51,807,000, compared to $24,936,000 in 2023[32] - The company incurred $588,000 in losses on the disposal of equipment for the year ended December 31, 2024[31] - The implementation of an ERP system incurred costs of $465,000 in Q4 2023[33] - Advisory fees related to shareholder activism defense engagement amounted to $8,177,000 in 2023[33]

Core Viewpoint - Freshpet (FRPT) shares have recently declined by 16% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [3][4]. - This pattern signals that bears may have lost control, and the emergence of buying interest could lead to a trend reversal [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Freshpet, with a 3.4% increase in the consensus EPS estimate over the last 30 days, indicating that analysts expect better earnings than previously predicted [6][7]. - Freshpet holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Viewpoint - Freshpet (FRPT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Freshpet's Earnings Outlook - For the fiscal year ending December 2024, Freshpet is expected to earn $0.90 per share, reflecting a 228.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Freshpet has risen by 3.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Freshpet's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Freshpet (FRPT) has been on a downward spiral lately with significant selling pressure. After declining 11.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

Freshpet (FRPT) ended the recent trading session at $148.51, demonstrating a -0.68% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.36%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 0.51%.The seller of refrigerated fresh pet food's shares have seen an increase of 2.18% over the last month, surpassing the Consumer Staples sector's loss of 0.5% and the S&P 500's gain of 2.11%.The upcoming earnings release of Freshpet wil ...

BEDMINSTER, N.J., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Freshpet, Inc. (Nasdaq: FRPT) (“Freshpet” or the “Company”) today announced it will report results for the fourth quarter and full year ended December 31, 2024 and participate in the 2025 Consumer Analyst Group of New York (CAGNY) Conference on Thursday, February 20, 2025. The Company will host an earnings conference call with members of the executive management team to discuss its results with additional comments and details. The conference call webcast i ...

Freshpet (FRPT) closed at $160.54 in the latest trading session, marking a +0.65% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.47% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw a decrease of 0.51%.The the stock of seller of refrigerated fresh pet food has risen by 7.69% in the past month, leading the Consumer Staples sector's loss of 0.87% and the S&P 500's gain of 1.67%.Market participants will be closely follow ...

The consumer staples sector, particularly the food space, continues to be a resilient and attractive investment avenue. With shifting consumer habits emphasizing convenience, health, and sustainability, several companies have distinguished themselves as market leaders with strong growth potential. Tyson Foods, Inc. (TSN) stands out, bolstered by its innovation, market reach and operational efficiency.Tyson Foods’ Recipe for SuccessTyson Foods has built its success on a foundation of operational excellence, ...

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Freshpet (FRPT) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Freshpet is a member of the Consumer Staples sector. This group includes 181 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the aver ...