Packaged food company Simply Good Foods (NASDAQ: SMPL) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
Simply Good Foods met analysts’ revenue expectations last quarter, reporting revenues of $381 million, up 13.8% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA 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 2.2% year on year to $367.5 million, a reversal from the 17.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 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 five times over the last two years.
Looking at Simply Good Foods’s peers in the shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lamb Weston posted flat year-on-year revenue, beating analysts’ expectations by 2.6%, and Conagra reported a revenue decline of 5.8%, topping estimates by 0.7%. Lamb Weston traded up 11.4% following the results while Conagra was also up 5%.
Read our full analysis of Lamb Weston’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 down 1.9% during the same time and is heading into earnings with an average analyst price target of $35.70 (compared to the current share price of $25.69).
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