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Vital Farms's (NASDAQ:VITL) Q1 Earnings Results: Revenue In Line With Expectations
Vital Farms's (NASDAQ:VITL) Q1 Earnings Results: Revenue In Line With Expectations

Yahoo

time08-05-2025

  • Business
  • Yahoo

Vital Farms's (NASDAQ:VITL) Q1 Earnings Results: Revenue In Line With Expectations

Egg and butter company Vital Farms (NASDAQ:VITL) met Wall Street's revenue expectations in Q1 CY2025, with sales up 9.6% year on year to $162.2 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $740 million at the midpoint. Its GAAP profit of $0.37 per share was 45.1% above analysts' consensus estimates. Is now the time to buy Vital Farms? Find out in our full research report. Revenue: $162.2 million vs analyst estimates of $162.6 million (9.6% year-on-year growth, in line) EPS (GAAP): $0.37 vs analyst estimates of $0.26 (45.1% beat) Adjusted EBITDA: $27.48 million vs analyst estimates of $21.33 million (16.9% margin, 28.8% beat) The company reconfirmed its revenue guidance for the full year of $740 million at the midpoint EBITDA guidance for the full year is $100 million at the midpoint, below analyst estimates of $100.9 million Operating Margin: 13.4%, down from 16.3% in the same quarter last year Free Cash Flow Margin: 1.3%, down from 15.3% in the same quarter last year Market Capitalization: $1.6 billion 'We delivered first quarter results that were in-line with our overall expectations and made good progress on our key 2025 strategic initiatives", said Russell Diez-Canseco, Vital Farms' President and Chief Executive Officer. 'We demonstrated solid execution, ongoing business momentum, and our continued focus on bringing ethical food to the table." With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $620.6 million in revenue over the past 12 months, Vital Farms is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into. As you can see below, Vital Farms grew its sales at an incredible 30.5% compounded annual growth rate over the last three years as consumers bought more of its products. This quarter, Vital Farms grew its revenue by 9.6% year on year, and its $162.2 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 25% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and indicates the market sees success for its products. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can't use accounting profits to pay the bills. Vital Farms has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company's free cash flow margin averaged 6.6% over the last two years, slightly better than the broader consumer staples sector. Taking a step back, we can see that Vital Farms's margin dropped by 9.1 percentage points over the last year. If its declines continue, it could signal increasing investment needs and capital intensity. Vital Farms's free cash flow clocked in at $2.15 million in Q1, equivalent to a 1.3% margin. The company's cash profitability regressed as it was 14 percentage points lower than in the same quarter last year, which isn't ideal considering its longer-term trend. We were impressed by how significantly Vital Farms blew past analysts' EPS and EBITDA expectations this quarter. On the other hand, its full-year EBITDA guidance slightly missed. Overall, we think this was still a solid quarter. The stock remained flat at $36.01 immediately following the results. Sure, Vital Farms had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.

Vital Farms Reports First Quarter 2025 Financial Results
Vital Farms Reports First Quarter 2025 Financial Results

Associated Press

time08-05-2025

  • Business
  • Associated Press

Vital Farms Reports First Quarter 2025 Financial Results

Record First Quarter Net Revenue of $162.2 Million, Up 9.6% Versus Prior Year Period Reaffirms Fiscal Year 2025 Outlook of $740 Million in Net Revenue and $100 Million in Adjusted EBITDA On Track to Reach $1 Billion Net Revenue Target in 2027 AUSTIN, Texas, May 08, 2025 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today reported financial results for its first quarter ended March 30, 2025. Financial highlights for the first quarter ended March 30, 2025, compared to the first quarter ended March 31, 2024, include: 'We delivered first quarter results that were in-line with our overall expectations and made good progress on our key 2025 strategic initiatives, said Russell Diez-Canseco, Vital Farms' President and Chief Executive Officer. 'We demonstrated solid execution, ongoing business momentum, and our continued focus on bringing ethical food to the table. I'm pleased to reiterate our 2025 full-year guidance for net revenue and Adjusted EBITDA, and we remain on track to deliver our 2027 target of $1 billion in net revenue. Despite supply constraints, the first quarter represented the 20th consecutive quarter since our IPO in 2020 of year-over-year volume and net revenue growth, and after lapping two exceptional quarters in the previous years, our three-year net revenue CAGR is steady at 28%. I'm grateful to all our stakeholders—our farmers, suppliers, customers, crew members, stockholders, and communities—who make our progress possible every day. As demand for our products continues to increase, we continue to execute on our plan to accelerate our supply expansion. During the first quarter, we increased hens under contract as we added new family farms to our network, which I am thrilled to announce now exceeds 450 family farmers. Our internal capacity expansion plans also remain on track, with the construction of an additional egg washing and packing line at our Egg Central Station facility in Missouri slated for completion during the fourth quarter of 2025, as originally scheduled. Consumer awareness of Vital Farms continues to increase, a testament to our strong brand and powerful mission. We are seeing rising consumer awareness benefit not only our egg business but also our butter business, where we reported 41% net sales growth in the first quarter compared to the prior year period. Looking ahead to the remainder of the year, we continue to expect year-over-year net revenue growth to accelerate in the back half of the year as our supply chain investments enable higher sales volume. We believe we created a solid foundation in the first quarter and we are reiterating our fiscal year 2025 outlook and our objective to deliver $1 billion of net revenue by 2027.' 1Adjusted EBITDA is a non-GAAP financial measure defined in the section titled 'Non-GAAP Financial Measures' below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release. For the 13 Weeks Ended March 30, 2025 Net revenue increased 9.6% to $162.2 million in the first quarter of 2025, compared to $147.9 million in the first quarter of 2024. Net revenue growth in the first quarter of 2025 was driven by price/mix benefits of $12.4 million and volume-related revenue growth of $1.9 million. Volume growth was driven by accelerated demand for existing products, new offerings and retail distribution gains with new and existing customers. Gross profit was $62.5 million, or 38.5% of net revenue, in the first quarter of 2025, up from $58.9 million, or 39.8% of net revenue, in the prior year quarter. Gross profit growth was driven by higher net revenue, scale and price/mix benefits, and favorable conventional commodity and diesel costs. Gross profit margin was down due to increased investment in crew members to keep pace with planned company growth. Income from operations was $21.8 million in the first quarter of 2025, compared to income from operations of $24.2 million in the first quarter of 2024. The decrease was driven by higher crew member investments, partially offset by higher sales and gross profit. Net income was $16.9 million in the first quarter of 2025, compared to net income of $19.0 million in the prior year quarter. The decline in net income was driven by increased higher crew member investments, partially offset by higher sales and gross profit. Net income per diluted share was $0.37 for the first quarter of 2025, compared to net income per diluted share of $0.43 in the prior year quarter. Adjusted EBITDA was $27.5 million, or 16.9% of net revenue, in the first quarter of 2025, compared to $29.1 million, or 19.7% of net revenue, in the first quarter of 2024. The decrease in Adjusted EBITDA was primarily driven by higher crew member investments, partially offset by higher sales and gross profit. Adjusted EBITDA excludes certain non-cash items. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled 'Non-GAAP Financial Measures' below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release. Balance Sheet and Cash Flow Highlights Cash, cash equivalents and marketable securities were $161.3 million as of March 30, 2025, and we had no outstanding debt. Net cash provided by operating activities was $5.3 million for the 13-week period ended March 30, 2025, compared to net cash provided by operating activities of $23.9 million for the 13-week period ended March 31, 2024. Capital expenditures totaled $3.1 million in the 13-week period ended March 30, 2025, compared to $1.3 million in the 13-week period ended March 31, 2024. Fiscal 2025 Outlook Thilo Wrede, Vital Farms' Chief Financial Officer, commented: 'We are reiterating our financial guidance for fiscal 2025 as we navigate the dynamic macroeconomic environment. While consumer demand for our products remains strong, we are mindful of potential headwinds from global trade tensions and broader economic uncertainties that could impact consumer spending patterns in coming quarters. Our outlook balances our strong market position and robust consumer demand against these external factors. While we face near-term supply constraints, we expect these to ease moving forward as additional family farms ramp up production. We remain confident in our view that the strategic investments we are making to build our brand and expand our supply chain will enable us to deliver our long-term vision and reach our $1 billion net revenue target by 2027.' For fiscal year 2025, we continue to expect: Vital Farms' guidance assumes that there are no significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income and Adjusted EBITDA Margin and net income margin, their most directly comparable GAAP measures, without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results. Conference Call and Webcast Details Vital Farms will host a conference call and webcast at 8:30 a.m. ET today to discuss the results. To participate on the live call, listeners in North America may dial +1-800-715-9871 and international listeners may dial +1-646-307-1963 with the Conference ID: 8674985. Alternatively, participants may access the live webcast on the Vital Farms Investor Relations website at under 'Events & Presentations.' The webcast will be archived for 30 days. In addition, Vital Farms will publish its May 2025 Corporate Presentation as supporting materials to the webcast on the Vital Farms Investor Relations website at under 'Events & Presentations.' About Vital Farms Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas, in 2007, Vital Farms is now a national consumer brand that works with more than 450 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms' ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and crew members and stockholders. Vital Farms' products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 26,000 stores nationwide. Vital Farms pasture-raised eggs can also be found on menus at hundreds of foodservice operators across the country. For more information, visit Forward-Looking Statements This press release and the earnings call referencing this press release contain 'forward-looking' statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms' market opportunity, anticipated growth, expectations regarding supply constraints, timing regarding Vital Farms' Digital Transformation project, specifications and timing regarding Vital Farms' planned egg washing and packing facility in Seymour, Indiana and new egg grading system at Egg Central Station in Springfield, Missouri, the effect of such projects on Vital Farms' future revenue, future growth of its family farm network, and future financial performance, including management's outlook for fiscal year 2025 and management's long-term outlook. These forward-looking statements are based on Vital Farms' current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause Vital Farms' actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to: Vital Farms' expectations regarding its revenue, expenses, and other operating results; Vital Farms' ability to attract new customers, to successfully retain existing customers, to attract and retain its suppliers, distributors, and co-manufacturers, and to maintain its relationships with members of its existing farm network and further expand its farm network and development of its accelerator farms; Vital Farms' ability to sustain or increase its profitability; Vital Farms' expectations regarding its future growth in the foodservice channel; Vital Farms' ability to procure sufficient high-quality eggs, cream for its butter, and other raw materials; real or perceived quality or food safety issues with Vital Farms' products or other issues that adversely affect Vital Farms' brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms' relationships with, its farmers, suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the effects of outbreaks of agricultural diseases, including avian influenza and egg drop syndrome, the perception that outbreaks may occur or regulatory or market responses to such outbreaks generally; the ability of Vital Farms, its farmers, suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; the impacts of international trade restrictions and tariff regimes; the effects of a public health pandemic or contagious disease, or fear of such outbreaks, on Vital Farms' supply chain, the demand for its products, and on overall economic conditions, consumer confidence and spending levels; specifications and timing regarding Vital Farms' planned egg washing and packing facility in Seymour, Indiana and the timing for installation of an additional egg washing and packing line at Vital Farms' Egg Central Station facility in Missouri, and the impacts of prior or future expansions of such facilities on Vital Farms' future revenue and farm network; future investments in its business, anticipated capital expenditures and estimates regarding capital requirements; anticipated changes in Vital Farms' product offerings and Vital Farms' ability to innovate to offer new products or enter into new product categories; the costs and success of marketing efforts; Vital Farms' ability to effectively manage its growth, to maintain effective internal controls over financial reporting and to remediate and prevent material weaknesses in its internal controls; Vital Farms' ability to compete effectively with existing competitors and new market entrants; the impact of adverse or volatile economic conditions, elevated interest rates, and inflation; the potential influence of Vital Farms' focus on a specific public benefit purpose and producing a positive effect for society on its financial performance; the sufficiency of Vital Farms' cash, cash equivalents, marketable securities and availability of credit under its credit facility to meet liquidity needs; seasonality; and the growth rates of the markets in which Vital Farms competes. These risks and uncertainties are more fully described in Vital Farms' filings with the Securities and Exchange Commission (SEC), including in the sections entitled 'Risk Factors' in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024, which Vital Farms filed on February 27, 2025, its Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025, which Vital Farms anticipates filing on May 8, 2025, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties, and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management's beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law. Media: Rob Discher [email protected] Investors: John Mills ICR [email protected] Non-GAAP Financial Measures We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP financial measures, provide investors with additional useful information in evaluating our performance. Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not required by or presented in accordance with GAAP. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA and Adjusted EBITDA Margin are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) (benefit) or provision for income taxes as applicable; (4) interest expense; and (5) interest income. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by Net Revenue. Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) they do not consider the impact of stock-based compensation expense, (4) they do not reflect other non-operating expenses, including interest expense; and (5) they do not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the same manner, limiting the usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial measures, including our net income and other results stated in accordance with GAAP. The following table presents a reconciliation of Adjusted EBITDA to net income and a reconciliation of Adjusted EBITDA Margin to net income margin, the most directly comparable financial measures stated in accordance with GAAP, for the 13- and 39-week periods presented.

Q4 Earnings Highlights: Vital Farms (NASDAQ:VITL) Vs The Rest Of The Perishable Food Stocks
Q4 Earnings Highlights: Vital Farms (NASDAQ:VITL) Vs The Rest Of The Perishable Food Stocks

Yahoo

time14-04-2025

  • Business
  • Yahoo

Q4 Earnings Highlights: Vital Farms (NASDAQ:VITL) Vs The Rest Of The Perishable Food Stocks

Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Vital Farms (NASDAQ:VITL) and the best and worst performers in the perishable food industry. The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements. The 11 perishable food stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 1.4%. While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results. With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter. Vital Farms reported revenues of $166 million, up 22.2% year on year. This print exceeded analysts' expectations by 3.8%. Overall, it was a stunning quarter for the company with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. '2024 was an outstanding year for Vital Farms. We exceeded $600 million in net revenue, keeping us well on track to deliver our $1 billion sales target by 2027.' said Russell Diez-Canseco, Vital Farms' President and CEO. Vital Farms pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $34.02. We think Vital Farms is a good business, but is it a buy today? Read our full report here, it's free. Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados. Mission Produce reported revenues of $334.2 million, up 29.2% year on year, outperforming analysts' expectations by 17%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Mission Produce pulled off the biggest analyst estimates beat among its peers. The stock is down 15.5% since reporting. It currently trades at $9.98. Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it's free. Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables. Fresh Del Monte Produce reported revenues of $1.01 billion, flat year on year, falling short of analysts' expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and gross margin estimates. The stock is flat since the results and currently trades at $30.60. Read our full analysis of Fresh Del Monte Produce's results here. Known for brands such as Egg-Land's Best and Land O' Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs. Cal-Maine reported revenues of $1.42 billion, up 102% year on year. This number lagged analysts' expectations by 0.8%. Overall, it was a softer quarter as it also recorded a significant miss of analysts' EBITDA and gross margin estimates. Cal-Maine delivered the fastest revenue growth among its peers. The stock is up 10.5% since reporting and currently trades at $100. Read our full, actionable report on Cal-Maine here, it's free. With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes. Flowers Foods reported revenues of $1.11 billion, down 1.6% year on year. This result missed analysts' expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced full-year revenue guidance exceeding analysts' expectations but a miss of analysts' organic revenue estimates. The stock is down 5.8% since reporting and currently trades at $18.21. Read our full, actionable report on Flowers Foods here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. 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With EPS Growth And More, Vital Farms (NASDAQ:VITL) Makes An Interesting Case
With EPS Growth And More, Vital Farms (NASDAQ:VITL) Makes An Interesting Case

Yahoo

time17-02-2025

  • Business
  • Yahoo

With EPS Growth And More, Vital Farms (NASDAQ:VITL) Makes An Interesting Case

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. In contrast to all that, many investors prefer to focus on companies like Vital Farms (NASDAQ:VITL), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Vital Farms with the means to add long-term value to shareholders. See our latest analysis for Vital Farms In the last three years Vital Farms' earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. Thus, it makes sense to focus on more recent growth rates, instead. In impressive fashion, Vital Farms' EPS grew from US$0.50 to US$1.14, over the previous 12 months. It's a rarity to see 128% year-on-year growth like that. The best case scenario? That the business has hit a true inflection point. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of Vital Farms shareholders is that EBIT margins have grown from 6.2% to 10% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Vital Farms' future EPS 100% free. It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Vital Farms followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Notably, they have an enviable stake in the company, worth US$336m. That equates to 22% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, you'd argue that they are indeed. For companies with market capitalisations between US$1.0b and US$3.2b, like Vital Farms, the median CEO pay is around US$5.1m. Vital Farms offered total compensation worth US$3.2m to its CEO in the year to December 2023. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense. Vital Farms' earnings per share have been soaring, with growth rates sky high. The sweetener is that insiders have a mountain of stock, and the CEO remuneration is quite reasonable. The strong EPS improvement suggests the businesses is humming along. Vital Farms is certainly doing some things right and is well worth investigating. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider this free discounted cashflow valuation of Vital Farms. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio

Vital Farms to Report Fourth Quarter and Fiscal Year 2024 Financial Results on February 27, 2025
Vital Farms to Report Fourth Quarter and Fiscal Year 2024 Financial Results on February 27, 2025

Associated Press

time10-02-2025

  • Business
  • Associated Press

Vital Farms to Report Fourth Quarter and Fiscal Year 2024 Financial Results on February 27, 2025

AUSTIN, Texas, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, will report financial results for the fourth quarter and fiscal year ended December 29, 2024, on Thursday, February 27, 2025, before market open. Vital Farms will host a conference call and webcast at 8:30 a.m. ET on the same day to discuss the results. To participate on the live call, listeners in North America may dial +1-800-715-9871 and international listeners may dial +1-646-307-1963 with the Conference ID: 8674985. Alternatively, participants may access the live webcast on the Vital Farms Investor Relations website at under 'Events.' The webcast will be archived for 30 days About Vital Farms Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas in 2007, Vital Farms is now a national consumer brand that works with over 425 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms' ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and crew members and stockholders. Vital Farms' products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 24,000 stores nationwide. Vital Farms pasture-raised eggs can also be found on menus at hundreds of foodservice operators across the country. For more information, visit Media: Investors: Anthony Bucalo

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