Freshpet's stock rises 13% as pet-food maker swings to larger-than-expected profit
By Steve Gelsi
Pet food company's sales rise as it boosts media spending
Freshpet Inc.'s stock was up by 13% in premarket trading on Monday after the pet-food company's fourth-quarter revenue and profit topped analyst estimates.
Freshpet (FRPT) said it earned $15.66 million, or 31 cents a share in the fourth quarter. In the year-ago period, Freshpet lost $2.59 million, or 6 cents a share.
Analysts estimated Freshpet would earn 7 cents a share in the latest quarter, according to FactSet data.
Freshpet cited higher sales, increased gross margin, and reduced logistics costs as a percentage of net sales for its higher profit. These factors were partially offset by increased media spending of $10.4 million and selling, general and administrative expenses.
Freshpet's sales climbed to $215.4 million from $165.8 million, ahead of the FactSet consensus estimate of $204.6 million.
Looking ahead, Freshpet expects 2024 sales of about $950 million, ahead of the analyst estimate of $945.5 million.
Freshpet's stock was up by $12 to $104.01, the first time it's traded above $100 in about two years.
-Steve Gelsi
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02-26-24 0713ET
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