Packaged food company Simply Good Foods (NASDAQ: SMPL) will be announcing earnings results this Thursday morning. Here’s what investors should know.
Simply Good Foods met analysts’ revenue expectations last quarter, reporting revenues of $369 million, down 1.8% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
Is Simply Good Foods a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Simply Good Foods’s revenue to decline 1.5% year on year to $336.1 million, a reversal from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 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 four times over the last two years.
Looking at Simply Good Foods’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills’s revenues decreased 7.2% year on year, beating analysts’ expectations by 1.9%, and Conagra reported a revenue decline of 6.8%, in line with consensus estimates. General Mills traded up 3.6% following the results while Conagra was down 3%.
Read our full analysis of General Mills’s results here and Conagra’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. Simply Good Foods is up 5% during the same time and is heading into earnings with an average analyst price target of $29.60 (compared to the current share price of $19.22).
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