What happened:
Shares of pet food company Freshpet ( NASDAQ:FRPT ) jumped 18% in the morning session after the company reported fourth-quarter results that blew away analysts’ EPS expectations. Its earnings also beat Wall Street estimates as it saw momentum in the pet food sector. Notably, 2023 marks the sixth consecutive year of solid revenue growth, consistently exceeding 25%. Looking ahead, management’s EBITDA guidance of $105 million for the full year 2024 was ahead of expectations, and it noted that the company reached an inflection point this quarter in terms of profitability. Overall, it was a really good quarter that should please shareholders.
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What the market is telling us:
Freshpet’s shares are quite volatile and in the last year there have been 9 movements of more than 5%. But moves of this magnitude are very rare even for Freshpet and that tells us that this news has had a significant impact on the market’s perception of the business.
Freshpet is up 23.6% since the beginning of the year. Investors who bought $1,000 worth of Freshpet’s shares 5 years ago are now looking at an investment worth $2,814.
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