Egg and butter company Vital Farms (NASDAQ:VITL) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
Vital Farms met analysts’ revenue expectations last quarter, reporting revenues of $162.2 million, up 9.6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Vital Farms a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vital Farms’s revenue to grow 16% year on year to $171 million, slowing from the 38.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vital Farms has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Vital Farms’s peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fresh Del Monte Produce delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 2.2%, and Cal-Maine reported revenues up 72.2%, topping estimates by 21.3%. Fresh Del Monte Produce traded up 4.2% following the results while Cal-Maine was also up 13.6%.
Read our full analysis of Fresh Del Monte Produce’s results here and Cal-Maine’s results here.
Investors in the perishable food segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Vital Farms is down 4.3% during the same time and is heading into earnings with an average analyst price target of $45.90 (compared to the current share price of $36.65).
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