NASDAQ$VITL

Vital Farms Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong financial results for Q2 2024, with significant revenue growth and increased profitability.

Vital Farms reported a strong second quarter with net revenue increasing by 38.5% to $147.4 million and net income reaching $16.3 million. The company raised its fiscal year 2024 outlook, driven by strong first-half performance and a positive outlook for the remainder of the year. They are also planning a new egg washing and packing facility in Seymour, Indiana.

  • Net revenue increased by 38.5% to $147.4 million compared to the prior year.
  • Gross margin expanded by 362 basis points to 39.1%.
  • Net income increased to $16.3 million, compared to $6.7 million in the prior year.
  • The company is raising its fiscal year 2024 expectations.

Headline financials

Total Revenue

$147M

Previous: $106M+38.5%
EPS

$0.36

Previous: $0.15+140.0%
Adjusted EBITDA

$23.3M

No prior period
Capital Expenditures

-$6.91M

Previous: -$4.29M-61.1%
Free Cash Flow

$9.43M

Previous: $2.39M+294.2%
Net Income

$16.3M

Previous: $6.68M+144.5%
Operating Income

$17.1M

Previous: $8.04M+113.2%
Gross Profit

$57.7M

Previous: $37.8M+52.6%
Cash & Equivalents

$133M

Previous: $47.7M+179.3%
Total Assets

$320M

Previous: $236M+35.6%
Stock-Based Comp

$2.92M

Previous: $1.45M+101.7%

Revenue & EPS history

Vital Farms · Revenue · Quarterly

$147M

Q2 2024+38.5%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Vital Farms raised its fiscal year 2024 outlook, reflecting strong year-to-date performance and increased confidence for the remainder of the year. The increased guidance is based on a favorable commodity outlook and strong consumer demand supported by the company's marketing reinvestment strategy.

Tailwinds

  • Net revenue of at least $590 million, representing at least 25% growth versus fiscal year 2023.
  • Adjusted EBITDA of at least $75 million, representing at least 55% growth versus fiscal year 2023.
  • Favorable commodity outlook.
  • Strong consumer demand.
  • Marketing reinvestment strategy.

Headwinds

  • Assumes no significant disruptions to the supply chain.
  • Assumes no significant disruptions to customers or consumers.
  • Assumes no issues from adverse macroeconomic factors.
  • Cannot provide a reconciliation between forecasted Adjusted EBITDA and net income due to the unavailability of reliable estimates for income taxes.
  • These items are not within our control and may vary greatly between periods and could significantly impact future financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.7%

Avg return

Earnings day

-1.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

41%

12 / 29 earnings

Positive

+21.7%

Q1 2024

Best reaction

-20.8%

Q1 2027

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-20.8%-28.2%-16.3%
Q4 2025-10.9%-18.1%-47.0%
Q3 2025+16.6%+7.8%-2.2%
Q1 2025-9.3%-4.9%-14.0%
Q4 2024-9.1%-8.1%-12.3%
Q3 2024-16.2%-22.9%-3.9%
Q2 2024-12.2%-12.0%-15.7%
Q1 2024+21.7%+23.7%+39.9%
Q4 2023+7.9%+10.5%+33.8%
Q3 2023+2.7%+5.9%+22.6%
Q2 2023+17.6%+15.6%+12.5%
Q1 2023+18.6%+20.4%+13.2%
Q4 2022+1.0%-3.9%-5.1%
Q3 2022+4.3%+11.5%+13.4%
Q2 2022+12.3%+15.1%+5.3%
Q1 2022+0.1%-14.0%-22.6%
Q4 2021-6.9%-0.3%+5.2%
Q3 2021+13.6%+16.7%+6.5%
Q2 2021+2.5%+2.5%-4.7%
Q1 2021-3.2%+1.1%+7.3%
Q1 2020-3.2%+1.1%+7.3%
Q4 2020-14.1%-20.5%+2.6%
Q4 2018-14.1%-20.5%+2.6%
Q3 2020-14.7%-15.7%-26.3%
Q3 2019-14.7%-15.7%-26.3%
Q2 2020-4.8%+1.2%+9.3%
Q4 2019-4.8%+1.2%+9.3%
Q2 2019-4.8%+1.2%+9.3%
Q1 2019-4.8%+1.2%+9.3%

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