Uncovering Potential: Simply Good Foods's Earnings Preview

Simply Good Foods SMPL is preparing to release its quarterly earnings on Thursday, 2024-10-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Simply Good Foods to report an earnings per share (EPS) of $0.50.

Simply Good Foods bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.02, leading to a 1.23% increase in the share price the following trading session.

Here's a look at Simply Good Foods's past performance and the resulting price change:

Tracking Simply Good Foods's Stock Performance

Shares of Simply Good Foods were trading at $32.51 as of October 22. Over the last 52-week period, shares are down 11.46%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on Simply Good Foods

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Simply Good Foods.

The consensus rating for Simply Good Foods is Outperform, based on 1 analyst ratings. With an average one-year price target of $42.0, there's a potential 29.19% upside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of J&J Snack Foods, Nomad Foods and Cal-Maine Foods, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for J&J Snack Foods, with an average 1-year price target of $200.0, indicating a potential 515.2% upside.
• As per analysts' assessments, Nomad Foods is favoring an Buy trajectory, with an average 1-year price target of $24.0, suggesting a potential 26.18% downside.
• Cal-Maine Foods received a Neutral consensus from analysts, with an average 1-year price target of $82.0, implying a potential 152.23% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for J&J Snack Foods, Nomad Foods and Cal-Maine Foods, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Simply Good Foods is positioned in the middle among its peers for Consensus rating. It ranks at the bottom for Revenue Growth and Gross Profit, while it is at the top for Return on Equity.

All You Need to Know About Simply Good Foods

The Simply Good Foods Co is a consumer packaged food and beverage company. It provides low-carbohydrate, high protein bars, shakes, and other products such as confections, chips, and cookies under the Atkins and Quest brands. The company distributes its products in retail channels, predominantly in North America, including grocery, club, and mass merchandise, as well as through e-commerce, convenience, and other channels.

Simply Good Foods: Delving into Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Simply Good Foods's remarkable performance in 3 months is evident. As of 31 May, 2024, the company achieved an impressive revenue growth rate of 3.07%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.35%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Simply Good Foods's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.47%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Simply Good Foods's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.91% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Simply Good Foods's debt-to-equity ratio is below the industry average at 0.14, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Simply Good Foods visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.