Simply Good Foods Posts Mixed Q2 Results; Hopes On Protein Shake Developed For Consumers On Weight-loss Drug
Portfolio Pulse from Nabaparna Bhattacharya
Simply Good Foods Company (NASDAQ:SMPL) reported mixed Q2 results with earnings per share of $0.40, beating analyst expectations of $0.38, but missing revenue forecasts with $312.199 million against an expected $316.885 million. Sales grew 5.3% year over year, and adjusted EBITDA increased to $57.8 million from $50.9 million. The company is working on the Atkins revitalization plan for fiscal 2025 and is launching Atkins Strong, a protein shake for weight-loss drug users. FY24 sales are expected to grow around 4%-6%, with adjusted EBITDA increasing 6%-8%. SMPL shares dropped 0.66% to $32.38.
April 04, 2024 | 3:16 pm
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Simply Good Foods reported mixed Q2 results, beating EPS estimates but missing revenue forecasts. The company is optimistic about the Atkins Strong protein shake launch and expects FY24 sales growth of 4%-6%.
The mixed Q2 results with a beat on EPS but a miss on revenue forecasts could lead to short-term uncertainty among investors. However, the optimism surrounding the launch of Atkins Strong and the adjusted FY24 sales and EBITDA growth projections may balance out the initial negative reaction, leading to a neutral short-term impact on SMPL's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100