Packaged food company Simply Good Foods (NASDAQ:SMPL) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Simply Good Foods beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $375.7 million, up 17.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Simply Good Foods a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Simply Good Foods’s revenue to grow 12.5% year on year to $347.3 million, improving from the 2.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Simply Good Foods has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Simply Good Foods’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Conagra reported flat revenue, topping estimates by 1.5%. General Mills traded down 2.9% following the results while Conagra’s stock price was unchanged.
Read our full analysis of General Mills’s results here and Conagra’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the shelf-stable food stocks have shown solid performance, the group has generally underpeformed, with share prices down 6.6% on average over the last month. Simply Good Foods is down 5.2% during the same time and is heading into earnings with an average analyst price target of $40.50 (compared to the current share price of $37.79).
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