On July 6th
Derek Spartz (@derekilab
) wrote that Vital Farms wasn't getting any respect. His thesis was simple:
- $VITL's full year revenue guidance was great
- $VITL's stock was at its lowest level of the year
- The quarterly earnings call on August 3rd would remind the market how good the company was doing and the stock would spike
Today is August 3rd and Vital Farms reported:
- An earnings beat by $0.08
- Revenue topped estimates
- Net Revenue increase of +28.4% to $106.4 million
I bought on July 7th, the day after Derek wrote his Commonstock memo. Since Derek's thesis was around earnings, I'll be exiting my position today.
Thanks for the great call Derek!