Plant-based food and beverage company SunOpta (NASDAQ: STKL) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
SunOpta met analysts’ revenue expectations last quarter, reporting revenues of $193.9 million, up 8.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ gross margin estimates.
Is SunOpta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SunOpta’s revenue to grow 6.4% year on year to $194.5 million, slowing from the 18% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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. SunOpta has missed Wall Street’s revenue estimates three times over the last two years.
Looking at SunOpta’s peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 2.4%, and Simply Good Foods reported revenues up 15.2%, topping estimates by 1.6%. Lamb Weston traded up 9.1% following the results while Simply Good Foods was also up 9.2%.
Read our full analysis of Lamb Weston’s results here and Simply Good Foods’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 2.1% on average over the last month. SunOpta is up 15.9% during the same time and is heading into earnings with an average analyst price target of $9.83 (compared to the current share price of $4.60).
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