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Vital Farms (VITL) Q2 Earnings on the Deck: Key Factors to Note
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As Vital Farms, Inc. (VITL - Free Report) prepares to release its second-quarter 2024 earnings report on Aug 8 before the opening bell, anticipation is building around the company's potential for substantial revenue growth. Several strategic initiatives and trends suggest that Vital Farms 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 second-quarter revenues stands at $143.8 million, which indicates an increase of 35% from the prior-year reported figure.
The bottom line is also expected to have risen year over year. Although the Zacks Consensus Estimate for earnings per share has fallen by a penny to 21 cents over the past 30 days, it still suggests an increase of 40% from the year-ago quarter.
Vital Farms has a trailing four-quarter earnings surprise of 102.1%, on average. In the last reported quarter, this Phoenix, AZ-based company surpassed the Zacks Consensus Estimate by a margin of 87%.
Factors to Consider
Vital Farms is poised for a robust second-quarter performance, driven by its strategic expansion, operational efficiencies and ability to capitalize on market trends. The company’s enhanced product availability, cost-effective operations and diversified product portfolio collectively contribute to its anticipated revenue growth.
A key factor in this growth is Vital Farms’ active expansion of retail partnerships and distribution channels, which has made its high-quality products more accessible to consumers. By increasing the number of stock-keeping units available in stores, the company has significantly broadened its reach. This strategic move not only boosts product availability but also drives higher sales volumes.
Operational efficiency is another cornerstone of Vital Farms’ success. Its state-of-the-art facilities, such as the Egg Central Station in Springfield, MO, have been crucial in enhancing production capabilities. Significant investments in technology and process improvements have optimized packing and shipping, reducing costs and enabling the company to meet rising demand more effectively.
Furthermore, as consumer demand for organic and ethically produced food continues to grow, Vital Farms is well-positioned to benefit. The company’s focus on pasture-raised eggs and dairy products aligns with the increasing preference for health-conscious and environmentally friendly options. The introduction of new butter products sourced from family farms in Ireland also reflects a strategic diversification of Vital Farms' portfolio.
Despite the aforementioned tailwinds, margins remain an area to monitor, with potential concerns stemming from higher SG&A expenses and promotional activities.
Vital Farms, Inc. Price, Consensus and EPS Surprise
Our proven model predicts an earnings beat for Vital Farms this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Vital Farms has an Earnings ESP of +1.18% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
US Foods Holding (USFD - Free Report) has an Earnings ESP of +3.51% and currently carries a Zacks Rank of 3. USFD's top line is anticipated to advance year over year when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.65 billion, which suggests a 7.1% rise from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for US Foods Holding’s fiscal second-quarter earnings is pegged at 94 cents a share, up 19% from the year-ago quarter. USFD has a trailing four-quarter earnings surprise of 0.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Image: Bigstock
Vital Farms (VITL) Q2 Earnings on the Deck: Key Factors to Note
As Vital Farms, Inc. (VITL - Free Report) prepares to release its second-quarter 2024 earnings report on Aug 8 before the opening bell, anticipation is building around the company's potential for substantial revenue growth. Several strategic initiatives and trends suggest that Vital Farms 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 second-quarter revenues stands at $143.8 million, which indicates an increase of 35% from the prior-year reported figure.
The bottom line is also expected to have risen year over year. Although the Zacks Consensus Estimate for earnings per share has fallen by a penny to 21 cents over the past 30 days, it still suggests an increase of 40% from the year-ago quarter.
Vital Farms has a trailing four-quarter earnings surprise of 102.1%, on average. In the last reported quarter, this Phoenix, AZ-based company surpassed the Zacks Consensus Estimate by a margin of 87%.
Factors to Consider
Vital Farms is poised for a robust second-quarter performance, driven by its strategic expansion, operational efficiencies and ability to capitalize on market trends. The company’s enhanced product availability, cost-effective operations and diversified product portfolio collectively contribute to its anticipated revenue growth.
A key factor in this growth is Vital Farms’ active expansion of retail partnerships and distribution channels, which has made its high-quality products more accessible to consumers. By increasing the number of stock-keeping units available in stores, the company has significantly broadened its reach. This strategic move not only boosts product availability but also drives higher sales volumes.
Operational efficiency is another cornerstone of Vital Farms’ success. Its state-of-the-art facilities, such as the Egg Central Station in Springfield, MO, have been crucial in enhancing production capabilities. Significant investments in technology and process improvements have optimized packing and shipping, reducing costs and enabling the company to meet rising demand more effectively.
Furthermore, as consumer demand for organic and ethically produced food continues to grow, Vital Farms is well-positioned to benefit. The company’s focus on pasture-raised eggs and dairy products aligns with the increasing preference for health-conscious and environmentally friendly options. The introduction of new butter products sourced from family farms in Ireland also reflects a strategic diversification of Vital Farms' portfolio.
Despite the aforementioned tailwinds, margins remain an area to monitor, with potential concerns stemming from higher SG&A expenses and promotional activities.
Vital Farms, Inc. Price, Consensus and EPS Surprise
Vital Farms, Inc. price-consensus-eps-surprise-chart | Vital Farms, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Vital Farms this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Vital Farms has an Earnings ESP of +1.18% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
US Foods Holding (USFD - Free Report) has an Earnings ESP of +3.51% and currently carries a Zacks Rank of 3. USFD's top line is anticipated to advance year over year when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.65 billion, which suggests a 7.1% rise from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for US Foods Holding’s fiscal second-quarter earnings is pegged at 94 cents a share, up 19% from the year-ago quarter. USFD has a trailing four-quarter earnings surprise of 0.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80 billion, which implies growth of 1.3% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has increased by a penny in the past 30 days to $5.02 per share. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.