Simply Good Foods Beats Q3 Estimates, But 'Under-Shipping' Plan Points To Softer Q4
Simply Good Foods Co (NASDAQ: SMPL ) delivered its fiscal third-quarter results ahead of expectations, driven by better-than-expected results across the Quest and OWYN brands. The fourth-quarter guidance reflects that the company would "under-ship relative to consumption," according to DA Davidson. The Simply Good Foods Analyst: Analyst Matt Curtis maintained a Neutral rating, while lowering the price target to $14. The Simply Good Foods Thesis: Management’s turnaround effort is still in an early stage, resulting in concerns around the durability of the company’s sales improvement,Curtis said in the note. Check out other analyst stock ratings. He highlighted the following results reported by Simply Good Foods: Net sales contracted by 6.3% to $357 million but came in higher than consensus estimates of $333-$334 million. The sales outperformance was mainly driven by better-than-expected...
Simply Good Foods Co (NASDAQ: SMPL ) delivered its fiscal third-quarter results ahead of expectations, driven by better-than-expected results across the Quest and OWYN brands. The fourth-quarter guidance reflects that the company would "under-ship relative to consumption," according to DA Davidson. The Simply Good Foods Analyst: Analyst Matt Curtis maintained a Neutral rating, while lowering the price target to $14. The Simply Good Foods Thesis: Management’s turnaround effort is still in an early stage, resulting in concerns around the durability of the company’s sales improvement,Curtis said in the note.
Check out other analyst stock ratings. 3% to $357 million but came in higher than consensus estimates of $333-$334 million. The sales outperformance was mainly driven by better-than-expected results from the Quest and OWYN segments. Quest sales were driven by ongoing momentum in chips.
6% following two consecutive quarters of declines. 6%. 3%. Adjusted EBITDA declined 23% to $57 million but was higher than the consensus of $49-$50 million, driven mainly by the sales upside.
Benefits from productivity initiatives were offset by lower volumes, higher prices of commodities, and cost restructuring, the analyst stated. "Given the company’s intention to under-ship relative to consumption (which is expected to remain sequentially stable), F4Q guidance was set below consensus," Curtis wrote. Management guided to net revenue of $322 million-$332 million and adjusted EBITDA of $52 million-$57 million, below consensus estimates of $335 million and $61 million, respectively, the analyst noted. 35 billion, while narrowing the adjusted EBITDA guidance to $220-$225 million, he said.
"Further ahead, SMPL announced that it will implement a high-single-digit price increase in September to bolster gross margin against inflationary headwinds in commodities (particularly whey), packaging, and freight," the analyst further wrote. 52 at the time of publication on Friday, according to Pro data. Read Also: Dow Dips Over 1% As Iran Ceasefire Sinks: Investor Sentiment Weakens, Greed Index Remains In ‘Fear’ Zone