Freshpet ( NASDAQ: FRPT ) stock slid sharply on Tuesday as margins shrank and profits sank in the second quarter.
The New Jersey-based pet food and product company posted GAAP EPS of -$0.45, a figure $0.31 lower than anticipated by analysts. Meanwhile, revenue narrowly missed estimates as well. Gross profit margin fell 490 basis points from the prior year as expenses and costs increased significantly from 2021.
"The combination of inflation and short-term operating challenges negatively impacted our bottom line in the quarter, and we are reflecting those factors in our 2022 outlook,” CEO Billy Cyr said. “We continue to take the necessary corrective actions, such as another price increase to offset inflation, and are steadfastly committed to fixing the operational issues so that the rewards of our strong growth become more apparent."
For the full year, the Company updated its forecasts. The Company now expects adjusted EBITDA of less than $48M and capital expenditures totaling $320M. The company had projected adjusted EBITDA of less than $55M and $400M in expenditures in its first quarter report.
Shares fell 6.42% shortly after Tuesday's market open.
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Freshpet stock falls as losses widen, forecasts cut