Egg and butter company Vital Farms (NASDAQ:VITL) will be reporting results this Thursday morning. Here’s what to look for.
Vital Farms met analysts’ revenue expectations last quarter, reporting revenues of $213.6 million, up 28.7% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Vital Farms a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Vital Farms’s revenue to grow 12.9% year on year, improving from the 9.6% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Vital Farms’s peers in the perishable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cal-Maine’s revenues decreased 53% year on year, beating analysts’ expectations by 3.8%, and Fresh Del Monte Produce reported a revenue decline of 4.9%, topping estimates by 1.3%. Cal-Maine traded down 1.3% following the results.
Read our full analysis of Cal-Maine’s results here and Fresh Del Monte Produce’s results here.
Investors in the perishable food segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Vital Farms is down 2.1% during the same time and is heading into earnings with an average analyst price target of $21.50 (compared to the current share price of $12.83).
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