Packaged food company Simply Good Foods (NASDAQ: SMPL) will be reporting results this Thursday before the bell. Here’s what investors should know.
Simply Good Foods beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $359.7 million, up 15.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin 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 13.7% year on year to $380.5 million, improving from the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 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 five times over the last two years.
Looking at Simply Good Foods’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McCormick posted flat year-on-year revenue, meeting analysts’ expectations, and General Mills reported a revenue decline of 3.3%, falling short of estimates by 0.5%. McCormick traded up 3.6% following the results while General Mills was down 5.6%.
Read our full analysis of McCormick’s results here and General Mills’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.1% on average over the last month. Simply Good Foods is down 6.6% during the same time and is heading into earnings with an average analyst price target of $39.90 (compared to the current share price of $31.86).
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