Egg and butter company Vital Farms (NASDAQ:VITL) will be reporting earnings tomorrow before market open. Here's what to look for.
Vital Farms beat analysts' revenue expectations by 8.1% last quarter, reporting revenues of $147.9 million, up 24.1% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Vital Farms a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Vital Farms's revenue to grow 30% year on year to $138.4 million, improving from the 28.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vital Farms has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.6% on average.
Looking at Vital Farms's peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Pilgrim's Pride delivered year-on-year revenue growth of 5.8%, missing analysts' expectations by 1.4%, and Fresh Del Monte Produce reported a revenue decline of 3.5%, falling short of estimates by 3.5%. Pilgrim's Pride traded up 2.3% following the results while Fresh Del Monte Produce was also up 10.8%.
Read our full analysis of Pilgrim's Pride's results here and Fresh Del Monte Produce's results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 3.4% on average over the last month. Vital Farms is down 22.5% during the same time and is heading into earnings with an average analyst price target of $45.3 (compared to the current share price of $35.49).
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