What happened
Shares of Freshpet (FRPT +0.88%) have jumped today, up by 4% as of 12:15 p.m. EDT, after the company reported second-quarter earnings. The special pet food maker beat expectations and raised its guidance for full-year results.
So what
Revenue in the second quarter increased 33% to $80 million, which led to net income of $200,000, or breakeven per share. Consensus estimates called for $77.1 million in sales and a net loss of $0.06 per share. The consumer staples company, which makes various pet food and treats, said growth was driven in part by expanded distribution.
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"When the COVID crisis struck in March, our 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 and we converted that growth into a sharp improvement in our bottom line," CEO Billy Cyr said in a statement. "By focusing our efforts on the safety and wellbeing of our team members, we have been able to rebuild supply, replenish stores and convert more families to Freshpet at a time when our pets mean so much to us."
Now what
Freshpet boosted its outlook for 2020 and now expects more than $320 million in revenue, up from its prior forecast for sales to exceed $310 million. Wall Street is currently modeling for $312 million in sales this year. On top of that, adjusted EBITDA for the year should now be greater than $46 million, up from the prior guidance of exceeding $44 million.
