Freshpet (FRPT) Shares Skyrocket, What You Need To Know
What Happened:
Shares of pet food company Freshpet (NASDAQ:FRPT) jumped 18% in the morning session after the company reported fourth-quarter results that blew past analysts' EPS expectations. Its revenue also outperformed Wall Street's estimates as it saw momentum in the pet food sector. Notably, 2023 marked the sixth consecutive year of robust revenue growth, consistently exceeding 25%. Looking ahead, management's EBITDA guidance of $105 million for the full year 2024 came in ahead of expectations, and it noted the company reached an inflection point this quarter in terms of profitability. Overall, this was a really good quarter that should please shareholders.
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What is the market telling us:
Freshpet's shares are somewhat volatile and over the last year have had 9 moves greater than 5%. But moves this big are very rare even for Freshpet and that is indicating to us that this news had a significant impact on the market's perception of the business.
Freshpet is up 23.6% since the beginning of the year. Investors who bought $1,000 worth of Freshpet's shares 5 years ago would now be looking at an investment worth $2,814.
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