BellRing Brands (NYSE:BRBR) Issues Quarterly Earnings Results

BellRing Brands (NYSE:BRBR) issued its quarterly earnings data on Tuesday. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.07), FiscalAI reports. The business had revenue of $570.40 million during the quarter, compared to the consensus estimate of $548.72 million. BellRing Brands had a net margin of 7.28% and a negative return on equity of 33.04%. The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.55 EPS.

Here are the key takeaways from BellRing Brands’ conference call:

• Positive Sentiment: Third-quarter net sales rose 4%, with Premier Protein and Dymatize both exceeding expectations; Premier shake consumption increased 6% in dollars and Dymatize sales grew 27%.
• Negative Sentiment: Profitability was pressured by protein and freight inflation, tariffs, and excess bottle inventory. Adjusted gross margin fell to 27.7% from 35.1% a year ago, while fourth-quarter adjusted EBITDA margin is expected to be approximately 10%.
• Positive Sentiment: Management expects fiscal 2027 margins to improve through a double-digit Premier shake price increase, additional Dymatize pricing, $10 million–$12 million in annualized operating expense savings, and stronger supply-chain execution.
• Positive Sentiment: Growth initiatives include distribution gains in food, drug and mass retail and e-commerce, targeted convenience-store expansion, and new products such as the 42-gram Premier Ultimate Shake and Premier Protein Sparkling Soda.
• Negative Sentiment: The company expects net leverage to rise from 3.2x at the end of the third quarter to approximately 4x at fiscal year-end, partly due to a sizable legal settlement payment.

BellRing Brands Stock Performance

NYSE BRBR traded down $0.44 on Thursday, reaching $12.17. The company had a trading volume of 187,529 shares, compared to its average volume of 4,698,221. The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of 8.56, a price-to-earnings-growth ratio of 6.20 and a beta of 0.45. BellRing Brands has a 1-year low of $7.82 and a 1-year high of $43.02. The company’s fifty day moving average is $11.33 and its 200-day moving average is $14.93.

Insider Buying and Selling

In related news, Director David Isaiah Finkelstein acquired 4,000 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was bought at an average price of $9.23 per share, for a total transaction of $36,920.00. Following the acquisition, the director directly owned 13,326 shares of the company’s stock, valued at approximately $122,998.98. The trade was a 42.89% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC increased its position in BellRing Brands by 86.9% during the fourth quarter. AQR Capital Management LLC now owns 7,006,847 shares of the company’s stock worth $187,013,000 after buying an additional 3,258,035 shares during the last quarter. Wasatch Advisors LP boosted its stake in shares of BellRing Brands by 30.5% during the 3rd quarter. Wasatch Advisors LP now owns 6,750,018 shares of the company’s stock worth $245,363,000 after acquiring an additional 1,575,812 shares during the period. The Manufacturers Life Insurance Company increased its holdings in shares of BellRing Brands by 156.3% during the 4th quarter. The Manufacturers Life Insurance Company now owns 3,830,164 shares of the company’s stock worth $102,380,000 after acquiring an additional 2,336,029 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of BellRing Brands by 0.5% during the 3rd quarter. Wellington Management Group LLP now owns 3,691,528 shares of the company’s stock worth $134,187,000 after acquiring an additional 19,471 shares during the last quarter. Finally, Alyeska Investment Group L.P. raised its stake in BellRing Brands by 0.6% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,739,160 shares of the company’s stock valued at $73,218,000 after acquiring an additional 17,174 shares during the period. Institutional investors own 94.97% of the company’s stock.

Wall Street Analyst Weigh In

BRBR has been the subject of several research reports. Bank of America lowered their price objective on shares of BellRing Brands from $22.00 to $19.00 and set a “neutral” rating for the company in a research report on Friday, April 10th. TD Cowen increased their price target on shares of BellRing Brands from $11.00 to $12.00 and gave the company a “hold” rating in a research note on Wednesday. Stifel Nicolaus raised their price target on shares of BellRing Brands from $14.00 to $15.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. JPMorgan Chase & Co. boosted their price objective on shares of BellRing Brands from $13.00 to $17.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 28th. Finally, DA Davidson upped their price objective on BellRing Brands from $13.00 to $15.00 and gave the stock a “buy” rating in a report on Wednesday. Nine investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $19.82.

About BellRing Brands

BellRing Brands, Inc is a consumer packaged goods company specializing in high‐protein, better‐for‐you nutrition products. Formed in March 2020 as a spin‐off from Post Holdings, the company focuses on delivering convenient protein solutions to health‐conscious consumers through a portfolio of well‐known and emerging brands.

The company’s product offerings include ready‐to‐drink protein shakes, protein powders, nutrition bars and other performance nutrition items. BellRing Brands’ flagship brands include Premier Protein, a line of shakes and bars designed for everyday protein supplementation, as well as Dymatize and PowerBar, which cater to athletes and active individuals seeking advanced sports nutrition formulas.

BellRing Brands markets its products primarily across North America, leveraging relationships with major retailers, wholesale clubs and e-commerce platforms to reach consumers in the United States and Canada.