Stock Story -
What Happened: Shares of egg and butter company Vital Farms (NASDAQ:VITL) jumped 13.2% in the pre-market session after the company reported fourth quarter results that blew past analysts' operating margin and EPS expectations. Its revenue also beat, driven by volume growth of 11.6% - this type of unit growth is rare in the consumer staples industry.
Topping off the strong quarter was encouraging guidance, as management's revenue and EBITDA outlook of $552 million and $57 million cleared Wall Street's projections. The company's long-term goal is to hit $1 billion in net revenue by 2027 with a 35% gross margin and 12-14% adjusted EBITDA margin.
Zooming out, this was a great quarter that shareholders will appreciate. After the initial pop the shares cooled down to $19.82, up 4.3% from previous close.
Is now the time to buy Vital Farms? Find out by reading the original article on StockStory.
What is the market telling us: Vital Farms's shares are not very volatile than the market average and over the last year have had only 15 moves greater than 5%. Moves this big are very rare for Vital Farms and that is indicating to us that this news had a significant impact on the market's perception of the business.
Vital Farms is up 28.6% since the beginning of the year. Investors who bought $1,000 worth of Vital Farms's shares at the IPO in July 2020 would now be looking at an investment worth $562.71.
![Why Vital Farms (VITL) Stock Is Up Today](https://d68-invdn-com.investing.com/content/pic85530338ec1096cd708cd26bc411ac66.jpeg)