We Think Freshpet's (NASDAQ:FRPT) Profit Is Only A Baseline For What They Can Achieve

Yahoo

12-05-2025

When companies post strong earnings, the stock generally performs well, just like Freshpet, Inc.'s (NASDAQ:FRPT) stock has recently. Our analysis found some more factors that we think are good for shareholders.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
To properly understand Freshpet's profit results, we need to consider the US$18m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Freshpet took a rather significant hit from unusual items in the year to March 2025. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
As we mentioned previously, the Freshpet's profit was hampered by unusual items in the last year. Because of this, we think Freshpet's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And the EPS is up 59% over the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Freshpet.
This note has only looked at a single factor that sheds light on the nature of Freshpet's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.