Investors appear to be purring over Freshpet's (FRPT -1.06%) Q2 2020 results, which were reported on Monday after market close. The company had $80 million in sales, a 33.2% jump year over year. That put net income at $200,000, barely reaching positive territory but surpassing the $5.7 million net loss in the prior-year quarter.
Revenue beat analysts' consensus by $2.88 million. Earnings per share broke even for the quarter, also beating analysts, who anticipated a $0.05 loss per share, according to Zacks Equity Research. The break-even EPS number once again put the company ahead of last year's performance, when Q2 saw a $0.16 net loss per share.
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Freshpet also revised its fiscal-year 2020 outlook upward in the earnings release, raising its expected full-year net sales from $310 million to $320 million. That would be more than 30% higher than fiscal 2019. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is forecast to be 59% higher than 2019's EBITDA.
CEO Billy Cyr credited a flexible business model and employee initiative for the improvement, noting the employee team "quickly pivoted to address the changing environment, and that enabled us to deliver very robust results -- with the second quarter reflecting our strongest sales growth in years." Increased sales drove part of the gains, with the rest resulting from a change in sales mix as consumers began buying higher-priced pet foods, along with new products.
Investors seem to think the company's strong results are the cat's meow. Shares rose on Monday, and were up more than 5% in morning trading today.
