Why Vital Farms (VITL) Stock Is Up Today

Jabin Bastian /
2024/03/07 11:43 am EST

What Happened:

Shares of egg and butter company Vital Farms (NASDAQ:VITL) jumped 13.2% in the pre-market session after the company reported fourth quarter results that blew past analysts' operating margin and EPS expectations. Its revenue also beat, driven by volume growth of 11.6% - this type of unit growth is rare in the consumer staples industry. Topping off the strong quarter was encouraging guidance, as management's revenue and EBITDA outlook of $552 million and $57 million cleared Wall Street's projections. The company's long-term goal is to hit $1 billion in net revenue by 2027 with a 35% gross margin and 12-14% adjusted EBITDA margin. Zooming out, this was a great quarter that shareholders will appreciate. After the initial pop the shares cooled down to $19.82, up 4.3% from previous close.

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What is the market telling us:

Vital Farms's shares are not very volatile than the market average and over the last year have had only 15 moves greater than 5%. Moves this big are very rare for Vital Farms and that is indicating to us that this news had a significant impact on the market's perception of the business.

Vital Farms is up 28.6% since the beginning of the year. Investors who bought $1,000 worth of Vital Farms's shares at the IPO in July 2020 would now be looking at an investment worth $562.71.

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