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Freshpet (FRPT) to Post Q2 Earnings: What Awaits the Stock?

Freshpet, Inc. FRPT — a renowned pet food products company — is likely to register top-line growth when it reports second-quarter 2021 results on Aug 2, after market close. The Zacks Consensus Estimate for revenues is pegged at $105.2 million, which indicates growth of 31.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter bottom line currently stands at a loss of 6 cents per share. The company incurred break-even earnings in the year-ago quarter. The consensus mark has remained stable in the past 30 days. The company incurred a loss in the past two quarters.

Key Aspects to Note

Freshpet’s top line during the second quarter is likely to have gained from strong product offerings backed by the company’s prudent innovation efforts. It has been ramping up distribution and trade inventory to cater to consumers’ needs for fresh and natural ingredients based pet food products. The company is gaining from improved shipments, consumption trends, retail availability and overall production levels.

Freshpet’s pet specialty channel is likely to have performed well in the second quarter, driven by expanded fridges across stores. These factors apart, the company’s sturdy e-commerce business and prudent efforts to boost international business are likely to have been upsides.

The company may have incurred higher fright costs in the to-be-reported quarter. Higher freight costs are a result of lower fill rates. Inflationary trends in beef and labor costs as well as higher production expenses are also likely to have dented the company’s bottom line.

Freshpet, Inc. Price, Consensus and EPS Surprise


Freshpet, Inc. price-consensus-eps-surprise-chart | Freshpet, Inc. Quote


What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Freshpet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Freshpet has a Zacks Rank #4 and an Earnings ESP of -16.67%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat:

Darling Ingredients Inc. DAR) currently has an Earnings ESP of +10.09% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast, Inc. MED currently has an Earnings ESP of +7.27% and a Zacks Rank #2.

B&G Foods, Inc. BGS has an Earnings ESP of +6.82% and a Zacks Rank #3, at present.

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