Overview
Nutritional snacking leader's Q1 revenue slightly beat analyst expectations
Adjusted EPS for Q1 beat analyst expectations
Company reaffirmed fiscal year 2026 outlook, anticipating stronger second half
Outlook
Simply Good Foods reaffirms fiscal 2026 net sales outlook of -2% to +2% growth
Company expects fiscal 2026 gross margins to decline by 100 to 150 basis points
Simply Good Foods anticipates adjusted EBITDA to range from -4% to +1% for fiscal 2026
Result Drivers
BRAND PERFORMANCE - Quest grew 9.6%, offset by declines in Atkins and OWYN, with OWYN affected by past product quality issues
INPUT COSTS - Gross margin fell 590 basis points due to elevated input costs and tariffs, partially offset by productivity
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $340.20 mln | $339.34 mln (10 Analysts) |
Q1 Adjusted EPS | Beat | $0.39 | $0.36 (7 Analysts) |
Q1 EPS | $0.26 | ||
Q1 Net Income | $25.30 mln | ||
Q1 Gross Margin | 32.30% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Simply Good Foods Co is $31.50, about 62.6% above its January 7 closing price of $19.37
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nGNX4zhQgf
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
