The longer-term trend of Vital Farms (NASDAQ: VITL ), which I will also show in this article, is still positive in sales and earnings per share. In addition, the company has a structural tailwind as people are consuming more eggs and gainingMy focus is on a total return style with long and short positions (10-30% short positions). My main expertise is the current technological and geopolitical shift with the amazing investment opportunities they offer. Therefore, I always try to find stocks or whole sectors ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Vital Farms, Inc. (VITL) reported third-quarter 2024 results, wherein the top and bottom lines increased year over year. The company’s earnings surpassed the Zacks Consensus Estimate, while sales were in line.VITL achieved notable sales momentum and unwavering support of farmers, suppliers, customers, consumers, crew members and stockholders who share its commitment to delivering ethical food. Vital Farms’ long-term strategy is designed to boost brand awareness, enhance consumer loyalty and grow household p ...

Financial Data and Key Metrics Changes - The company reported a net revenue of $145 million for Q3 2024, representing a 31.3% increase year-over-year [10][36] - Year-to-date sales grew by 31%, with a volume increase of 25%, up from 15% growth during the same period last year [10] - Gross margin improved by 368 basis points to 36.9% in Q3 and by 376 basis points to 38.6% for the first nine months [11] - Adjusted EBITDA for Q3 was $15.2 million, up 64.5% from last year, with a margin of 10.5%, an increase of 212 basis points [11][40] - The company raised its full-year guidance to at least $600 million in net revenue and at least $80 million in adjusted EBITDA [42][44] Business Line Data and Key Metrics Changes - The butter business saw a 5% increase in net revenue in Q3 after a relaunch, indicating recovery from earlier supply constraints [22][23] - The egg category units for Vital Farms increased by 33% in the latest 12 weeks, while the overall egg category units were up only 2% [30] Market Data and Key Metrics Changes - The egg category grew by 56% in dollar terms in the latest 12 weeks, largely due to private label pricing increases [30] - The company expanded its distribution points by 17.3% in the natural channel and by 20.2% in the food channel [12] Company Strategy and Development Direction - The company aims to reach $1 billion in net revenue by 2027, with a focus on expanding its farm network and production capacity [16][43] - Plans include the construction of a new facility in Indiana, expected to open in late 2026, to support long-term growth [14][45] - The company is committed to maintaining strong brand awareness and consumer loyalty through strategic marketing investments [79][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting increased demand despite operational challenges, including maintenance work at production facilities [49][50] - The company anticipates continued strong demand and plans to manage production to align with maintenance schedules [52] Other Important Information - The company has added over 375 family farms to its network and plans to continue expanding this network [14] - The company has no outstanding debt and reported cash and equivalents of $163 million as of September 29, 2024 [41] Q&A Session Summary Question: Can you comment on supply matching demand during the quarter? - Management noted that while maintenance impacted production, demand remained strong and exceeded internal expectations [49][50] Question: What are the expectations for maintenance levels in the current quarter? - Management indicated that maintenance levels would be consistent with Q3, focusing on planned production schedules [52] Question: How does the company view category dynamics and promotional activity? - Management stated that demand remains high despite increased promotions in the category, and they are carefully managing promotional activities [57][59] Question: What is the flexibility in capacity for the upcoming year? - Management emphasized that while they have built flexibility into their operating model, there are limits to how much they can increase capacity in the short term [64][66] Question: How is household penetration and buy rate trending? - Management reported that household penetration is on track, with growth coming from increased buy rates among existing consumers [72][74] Question: What are the expectations for marketing spend going forward? - Management indicated that marketing spend is expected to remain above historical levels as they continue to invest in brand awareness [80][86]

Vital Farms, Inc. (NASDAQ:VITL) Q3 2024 Earnings Conference Call November 7, 2024 8:30 AM ET Company Participants Anthony Bucalo - VP, IR Russell Diez-Canseco - President and CEO Pete Pappas - Chief Sales Officer Thilo Wrede - CFO Conference Call Participants Ben Klieve - Lake Street Capital Markets Brian Holland - D.A. Davidson Robert Moskow - TD Cowen Jon Andersen - William Blair Robert Dickerson - Jefferies Matt Smith - Stifel Operator Good day, and thank you for standing by. Welcome to the Vital Farms T ...

Financial Performance - Q3 2024 - Net revenue increased by 31.3% to $145.0 million, driven by volume and price/mix benefits[15] - Gross profit was $53.5 million, representing 36.9% of net revenue, a 368 bps increase due to price mix, operational efficiencies, and scale[15] - Income from operations increased by 76.7% to $9.24 million[15] - Adjusted EBITDA increased by 64.5% to $15.2 million, or 10.5% of net revenue[15] Financial Performance - YTD 2024 - Net revenue increased by 31.0% year-over-year[17] - Shell egg-related sales increased by 33% due to product performance and moderate price/mix benefits[17] - Butter-related sales increased by 5% in Q3 '24, but declined by 12% year-to-date due to discontinuation of a product[17] Outlook and Goals - The company updated its FY 2024 net revenue outlook to over $600 million, representing over 27% growth[20] - The company updated its FY 2024 Adjusted EBITDA outlook to over $80 million[20] - The company aims to achieve $1 billion in net revenue by 2027[21]

Core Insights - Vital Farms (VITL) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.10 per share a year ago, representing an earnings surprise of 14.29% [1] - The company achieved revenues of $145 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.21% and increasing from $110.43 million year-over-year [2] - Vital Farms has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The company had an earnings surprise of 71.43% in the previous quarter, where actual earnings were $0.36 compared to an expected $0.21 [1] - The current consensus EPS estimate for the upcoming quarter is $0.18, with projected revenues of $159.13 million, and for the current fiscal year, the EPS estimate is $1.11 on revenues of $599.07 million [7] Stock Performance - Vital Farms shares have increased approximately 135% since the beginning of the year, significantly outperforming the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Context - Vital Farms operates within the Zacks Food - Miscellaneous industry, which is currently ranked in the bottom 43% of over 250 Zacks industries [8] - The performance of the stock may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform lower-ranked ones by a factor of more than 2 to 1 [8]

As Vital Farms, Inc. (VITL) prepares to release its third-quarter 2024 earnings report on Nov. 7 before the opening bell, anticipation is building around its revenue growth potential. Several strategic initiatives and trends suggest that the company is poised for a strong performance.With a commitment to ethical food production and high-quality, pasture-raised products, Vital Farms has established a distinctive position in the competitive food industry. The Zacks Consensus Estimate for third-quarter revenue ...

In the latest trading session, Vital Farms (VITL) closed at $34.56, marking a -0.35% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.8%.The company's shares have seen a decrease of 2.28% over the last month, surpassing the Consumer Staples sector's loss of 5.18% and falling behind the S&P 500's loss of 0.97%.The investment community will be paying close attention to the earning ...

Vital Farms (VITL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this company have returned -2.3% over the past month versus the Zacks S&P 500 composite's -1% change. The Zacks Food - Miscellaneous industry, to which Vital Farms belongs, has lost 4.9% over this period. Now the key question is: Where could the stock be headed in the near term?While media releases or r ...