What to expect from Freshpet's (FRPT) Q3 earnings

What happened

Freshpet, a pet food company, will report third-quarter earnings Wednesday before the market opens. Last quarter it reported revenue of $305.6 million, up 15.5% from a year earlier, beating analyst revenue expectations. Analysts expect 8.1% revenue growth this quarter.

Confirmed

Global impact / market context

The report will show whether Freshpet can keep growing sales quickly. Analysts expect growth to slow to 8.1% from 14% a year earlier, and the company has missed revenue estimates several times, so a miss could weaken investor confidence in the stock.

Analyst inference

Peers in consumer staples have already reported mixed third-quarter results. Pilgrim's Pride revenue fell 2.2% and missed estimates, while Cal-Maine revenue dropped 41.5% and also fell short, suggesting demand or pricing pressure across the segment that could shape expectations for Freshpet.

Analyst inference

What to watch

1. Freshpet reports earnings Wednesday before the market opens; watch whether revenue grows near the 8.1% analysts expect, compared with 14% growth in the same quarter last year. Confirmed
2. Watch whether Freshpet meets or misses revenue estimates, since it has missed Wall Street's revenue expectations multiple times over the past two years, which could move the stock sharply. Analyst inference
3. Watch whether Freshpet repeats last quarter's beats on EBITDA, a measure of operating profit, and organic revenue, which excludes currency effects, since those beats drove the prior strong result. Analyst inference

Evidence

• stockstory.org