Key insights
- Vitl Farms stock price declined sharply following a significant EPS miss despite revenue growth. Guidance was also lowered. While the author believes the market is overreacting and sees long-term value, the negative earnings surprise and weaker outlook could weigh on the stock in the short term, potentially impacting other consumer staple stocks.
Closed around 12.20 yesterday, today dumps as low as 8.40 (at the time of writing), generally hovering mostly around 9 flat.
Revenue popped 15 percent, continuing it's unbroken streak of growth forever, but EPS was a huge miss, basically a tiny net loss vs 15m earnings a year ago. Guidance was adjusted towards the weaker end, of 750m and ebitda pretty much flat.
2026 looking to be a reset year. But at this price it's slightly above book value for a debt free company that will continue to pop at 15 percent for a long time. Even the slightest improvement in margins will drive this crazy higher .. I put intrinsic value at 24 dollars (some analysts say higher, I say 24).
I had a medium position at 12... Now I have a large position... Blended avg cost 10.5. nfa. Thoughts?