Simply Good Foods Reports Earnings Above Street View, Over $115M In Gross Profit
Portfolio Pulse from Shivani Kumaresan
The Simply Good Foods Company (NASDAQ:SMPL) reported a 2.6% increase in Q1 FY24 sales to $308.68 million, slightly missing analyst estimates. Quest volume growth drove sales, compensating for Atkins' weakness. Gross profit reached $115.1 million, with a 37.3% gross margin. Operating expenses were up 8.2% to $63.3 million, and operating margin stood at 16.8%. Adjusted EBITDA rose 2% to $62 million, while net income fell marginally to $35.6 million. Adjusted EPS of $0.43 beat the $0.42 consensus. The company generated $47.5 million in operating cash flow and ended the quarter with $121.4 million in cash. SMPL reaffirmed its FY24 outlook, expecting net sales to increase at the high end of 4-6% and adjusted EBITDA to grow slightly more than sales. SMPL shares closed down 0.30% at $39.59.
January 04, 2024 | 4:09 pm
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Simply Good Foods reported a slight sales increase and a higher gross profit, with adjusted EPS beating estimates. The company reaffirmed a positive outlook for FY24, but shares closed slightly down.
Despite a slight miss on sales estimates and a marginal dip in net income, SMPL's earnings beat and positive outlook could maintain investor confidence. The slight drop in share price post-earnings indicates a neutral short-term impact as the market digests the mixed results.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100