Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at BellRing Brands (NYSE: BRBR) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 21 shelf-stable food stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% above.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.
BellRing Brands (NYSE: BRBR)
Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
BellRing Brands reported revenues of $532.9 million, up 23.8% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
BellRing Brands achieved the fastest revenue growth and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.5% since reporting and currently trades at $68.44.
Best Q4: Lancaster Colony (NASDAQ: LANC)
Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ: LANC) sells bread, dressing, and dips to the retail and food service channels.
Lancaster Colony reported revenues of $509.3 million, up 4.8% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Lancaster Colony scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $179.60.
Is now the time to buy Lancaster Colony? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Lamb Weston (NYSE: LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.60 billion, down 7.6% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 34.6% since the results and currently trades at $51.06.
Read our full analysis of Lamb Weston’s results here.
Hershey (NYSE: HSY)
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Hershey reported revenues of $2.89 billion, up 8.7% year on year. This result topped analysts’ expectations by 1.6%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ gross margin and EBITDA estimates.
The stock is up 17.4% since reporting and currently trades at $171.40.
Read our full, actionable report on Hershey here, it’s free.
McCormick (NYSE: MKC)
The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
McCormick reported revenues of $1.80 billion, up 2.6% year on year. This print surpassed analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
The stock is up 11.7% since reporting and currently trades at $81.79.
Read our full, actionable report on McCormick here, it’s free.
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