VITL Earnings Prediction
The chart below shows how VITL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VITL sees a -8.13% change in stock price 10 days leading up to the earnings, and a +1.34% change 10 days following the report. On the earnings day itself, the stock moves by +7.47%. This data can give you a slight idea of what to expect for the next quarter's release.
VITL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
165.99M
22.22%
14.47%
Gross Margin
36.07%
8.38%
-2.20%
Operating Margin
7.83%
17.04%
22.92%
Net Margin
6.37%
19.96%
23.93%
EPS
0.23
35.29%
43.75%
No Data Available
VITL Earnings Analysis
Vital Farms Inc Corporation (VITL.O) Earnings Conference Call
Positive
Revenue Surpasses Expectations: Vital Farms exceeded $600 million in net revenue for 2024, surpassing initial expectations and keeping on track to meet the $1 billion sales target by 2027.
Farm Expansion Success: The company added over 125 new family farms, increasing egg sourcing capacity by more than 40%, demonstrating strong recruitment efforts and the appeal of the Vital Farms model.
Brand Awareness Surge: Brand awareness reached new heights, with aided brand awareness increasing to 26%, up from 23% at the end of 2023, significantly outpacing competitors.
Butter Sales Surge: Butter sales grew by 11% in 2024, with a nearly doubling of quarterly sales in Q4, indicating a strong recovery and growth potential in this segment.
New Production Facility Plans: The company announced plans for a new egg washing and packing facility, expected to significantly increase production capacity and support future growth.
Adjusted EBITDA Growth: Vital Farms' adjusted EBITDA grew 79.2% to $86.7 million, with an adjusted EBITDA margin increase of 405 basis points, reflecting strong operational efficiency and revenue growth.
Financial Stability and Liquidity: The company maintained a strong balance sheet with $160.3 million in cash and no debt, providing financial stability for future investments.
Sales Velocity Increase: The sales and marketing efforts have effectively built the brand, with a nearly 40% increase in sales velocity from 2023 to 2024, indicating strong consumer demand and brand loyalty.
Negative
Egg Supply Constraints: The company is facing supply constraints due to ongoing avian influenza outbreaks, which have resulted in the loss of millions of egg layers and created a national egg shortage expected to last through 2025.
Growth Rate Decline: In the first quarter of 2025, the company anticipates a modest step down in growth rate compared to previous years, particularly due to lower inventory levels and the inability to sell through inventory as in prior years.
EBITDA Margin Decline Expected: The adjusted EBITDA margin is expected to decline in 2025 compared to the first half of 2024, which had high margins driven by exceptional operations, indicating potential challenges in maintaining profitability.
SG&A Expense Increase: The company reported an increase in SG&A expenses as a percentage of net revenue, primarily due to higher marketing-related expenses, stock-based compensation, and increased employee headcount, which could impact overall profitability.
Distribution Challenges Amid Growth: Despite a strong revenue growth of 28.5% in 2024, the company is still facing challenges with distribution points, as total distribution points decreased by 3% due to the discontinuation of tub butter, which may affect future sales growth.
VITL FAQs
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VITL Earning Call Sentiment
Vital Farms, Inc. (VITL) Q4 2024 Earnings Call Transcript
VITL.O
2.29%Positive
The earnings call reveals strong financial performance with significant revenue growth and improved margins, but concerns about increasing competition and rising operational costs persist. The Q&A section highlights uncertainties in pricing strategy and farm expansion, with management's vague responses raising doubts. Despite positive financials, lack of share repurchase plans and competitive pressures balance the outlook. Considering the market cap, the stock price is likely to remain stable, resulting in a neutral prediction.
