Simply Good Foods (NASDAQ:SMPL) Posts Earnings Results

Simply Good Foods (NASDAQ:SMPL) released its quarterly earnings data on Tuesday. The financial services provider reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04, FiscalAI reports. The business had revenue of $333.31 million during the quarter, compared to analyst estimates of $327.03 million. Simply Good Foods had a positive return on equity of 9.34% and a negative net margin of 14.28%. The company’s revenue was down 9.7% on a year-over-year basis. During the same quarter last year, the business posted $0.46 EPS.

Here are the key takeaways from Simply Good Foods’ conference call:

• Fiscal 2027 outlook remains weak: net sales are expected to decline 13%–17% and adjusted EBITDA 9%–14%, with the first quarter projected to be the most challenging as pricing, soft consumer demand, and distribution losses weigh on results.
• Management expects gross margin to improve by 250–300 basis points, helped by near-double-digit pricing, productivity initiatives, lower one-time costs, and approximately $8 million in annualized employee-cost savings.
• The company is reinvesting much of its margin improvement into marketing, raising marketing spending closer to 10% of sales and launching new campaigns for Quest, Atkins, and OWYN; management expects benefits to build gradually, with performance improving in the second half.
• Fourth-quarter retail consumption declined 8.4%, with Quest takeaway down 2.1%, Atkins down 22.6%, and OWYN down 7%; Atkins continues to suffer from household-penetration and distribution losses, while OWYN expects further non-core item reductions over the next six to nine months.
• Management highlighted financial flexibility, including $138.4 million of cash, approximately $181 million of operating cash flow, net leverage of about 0.9 times adjusted EBITDA, and $141 million remaining under the share-repurchase authorization.

Simply Good Foods Stock Up 11.2%

Shares of NASDAQ:SMPL opened at $10.84 on Thursday. The company has a current ratio of 4.80, a quick ratio of 3.10 and a debt-to-equity ratio of 0.28. The company has a fifty day simple moving average of $10.43 and a 200 day simple moving average of $13.03. The firm has a market cap of $958.91 million, a PE ratio of -5.00 and a beta of 0.19. Simply Good Foods has a 12-month low of $9.38 and a 12-month high of $22.00.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on SMPL. UBS Group reduced their price target on shares of Simply Good Foods from $12.00 to $11.00 and set a “neutral” rating on the stock in a research report on Wednesday. TD Cowen decreased their price target on shares of Simply Good Foods from $13.00 to $11.00 and set a “hold” rating for the company in a research note on Wednesday, August 26th. Jefferies Financial Group downgraded shares of Simply Good Foods from a “buy” rating to a “hold” rating and cut their price objective for the company from $15.00 to $11.00 in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $14.00 price objective on shares of Simply Good Foods in a research report on Friday, July 10th. Finally, Weiss Ratings cut Simply Good Foods from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday. Two investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued 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 $13.36.

Simply Good Foods Company Profile

The Simply Good Foods Company (NASDAQ: SMPL) is a consumer packaged food company focused on convenient, nutrition-focused products. Its portfolio is built around the Atkins and Quest brands, which serve consumers seeking lower-carbohydrate, higher-protein and better-for-you food options.

The company offers a variety of products, including protein bars, snack bars, shakes, cookies, chips, confectionery items, protein powders and frozen foods. Its products are sold through grocery stores, mass merchants, club stores, drugstores, convenience stores, e-commerce platforms and other retail channels.

Simply Good Foods was established in 2017 through the combination of Conyers Park Acquisition Corp.