Simply Good Foods (SMPL) Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy SMPL?
Source: NASDAQ.COM
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Analyst Views on SMPL
Wall Street analysts forecast SMPL stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 14.450
Low
22.00
Averages
27.25
High
35.00
Current: 14.450
Low
22.00
Averages
27.25
High
35.00
About SMPL
The Simply Good Foods Company is a consumer-packaged food and beverage company. The Company's portfolio brands include Quest, Atkins, and OWYN, which offer a variety of nutritional snacks and beverages, including high-protein chips, bars, ready-to-drink (RTD) shakes, powders, low sugar, low-carb sweets, and baked goods. Its nutritious snacking platform consists of brands that specialize in providing products for consumers that follow certain nutritional philosophies and health-and-wellness trends. The Quest brand is for consumers seeking a variety of protein-rich foods and beverages that also limit sugars and simple carbohydrates. The Atkins brand is for those following a low-carbohydrate lifestyle or seeking to manage weight or blood sugar levels. The OWYN brand is for consumers seeking protein-rich beverages that are plant-based and tested for the top nine allergens that also limit sugars and simple carbohydrates.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Simply Good Foods Set to Announce Q2 Earnings on April 9th
- Earnings Announcement Date: Simply Good Foods (SMPL) is set to announce its Q2 earnings on April 9th before market open, with consensus EPS estimate at $0.40, reflecting a 13% year-over-year decline, and revenue estimate at $343.87 million, down 4.4% year-over-year.
- Historical Performance Review: Over the past two years, SMPL has surpassed EPS estimates 88% of the time and revenue estimates 63% of the time, indicating a relative stability and market confidence during earnings releases.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and seven downward revisions, while revenue estimates have experienced three upward revisions and six downward revisions, reflecting a cautious market outlook on the company's future performance.
- Market Sentiment Analysis: Although Simply Good Foods' shares are considered oversold, analysts note that the company's buyback plans have not compensated for weaker margins, which may impact investor confidence.
See More
Simply Good Foods (SMPL) Earnings Transcript
See More
SMPL Announces Q2 Earnings Release Date
- Earnings Release Date: SMPL is set to release its Q2 earnings on April 9, with analysts projecting earnings per share of 40 cents, down from 46 cents last year, indicating potential profitability challenges for the company.
- New CEO Appointment: The naming of a new CEO has drawn market attention, as it may introduce a new strategic direction and management style, impacting future business development and investor confidence.
- Stock Price Increase: Following the earnings announcement, SMPL's stock gained 0.4%, reflecting a cautiously optimistic sentiment among investors regarding the new CEO's appointment and the upcoming earnings report, potentially signaling market expectations for the company’s future.
- Analyst Expectation Adjustment: Analysts have lowered their earnings expectations for SMPL, reflecting concerns about the company's future performance, which may influence investor decisions and stock price volatility.
See More
Iran War Continues to Drive Market Dynamics
- Oil Price Impact: The ongoing Iran war continues to drive market dynamics, with oil price fluctuations being a central concern; investors should monitor how stock markets react to oil price declines, despite the prevailing uncertainties.
- Inflation Data Focus: The upcoming Consumer Price Index (CPI) is expected to show a 2.7% year-over-year increase, reflecting the war's economic impact, which will guide the Federal Reserve's monetary policy adjustments and influence long-term interest rates.
- Earnings Reports: Delta Air Lines and others will report earnings next week, with Delta noting that a one-cent increase in jet fuel costs results in approximately $40 million in additional annual expenses, highlighting the significant impact of oil prices on the airline industry.
- Market Volatility Expectations: Given the uncertainty surrounding the war, stock markets are expected to remain volatile next week, necessitating close attention to the latest developments in the Iran conflict and their potential economic and market implications.
See More
Analysts Trim Fair Value for Simply Good Foods
- Fair Value Adjustment: Simply Good Foods' fair value has been trimmed from $28.00 to $27.90, reflecting analysts' cautious expectations regarding future growth and margins, which may impact investor confidence.
- Price Target Reduction: Jefferies has lowered its price target from $23 to $22 while maintaining a 'Buy' rating, indicating concerns over execution risks and margins that could lead to short-term stock price volatility.
- Long-term Growth Expectations: The long-term dollar revenue growth assumption has been reduced from 2.84% to 2.66%, and the net profit margin assumption has been lowered from 14.45% to 13.90%, which may affect investors' perceptions of the company's future profitability.
- Market Trend Analysis: Analysts highlight the rise of the 'easy protein' theme, and despite the price target reduction, Simply Good Foods is still viewed as an attractive investment opportunity to participate in the broader protein market, reflecting ongoing market interest in health-conscious eating trends.
See More
Congressional Members Invested in These 5 Stocks—Is It Worth Your Investment?
Congressional Stock Trading Legislation: Lawmakers from both parties have proposed banning members of Congress from trading individual stocks while in office, echoing sentiments from the STOCK Act of 2012, which aimed to enhance transparency in trading activities.
Recent Stock Purchases by Congress Members: Several members of Congress, including Representative Lisa McClain and Senator Shelley Moore Capito, have made notable stock purchases in companies like Big Bear AI and Simply Good Foods, raising questions about potential conflicts of interest.
Market Trends and Stock Performance: The article highlights significant stock performance trends, including a reported 52% gain for a top-performing member of Congress in stock trades, and discusses the implications of these trades on market perceptions and investor behavior.
Investor Caution and Research: Investors are advised to conduct thorough research before acting on congressional stock disclosures, as these trades may not serve as reliable trading signals due to the time lag in public disclosure and the potential for prior pricing adjustments.
See More
Simply Good Foods Set to Announce Q2 Earnings on April 9th
- Earnings Announcement Date: Simply Good Foods (SMPL) is set to announce its Q2 earnings on April 9th before market open, with consensus EPS estimate at $0.40, reflecting a 13% year-over-year decline, and revenue estimate at $343.87 million, down 4.4% year-over-year.
- Historical Performance Review: Over the past two years, SMPL has surpassed EPS estimates 88% of the time and revenue estimates 63% of the time, indicating a relative stability and market confidence during earnings releases.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and seven downward revisions, while revenue estimates have experienced three upward revisions and six downward revisions, reflecting a cautious market outlook on the company's future performance.
- Market Sentiment Analysis: Although Simply Good Foods' shares are considered oversold, analysts note that the company's buyback plans have not compensated for weaker margins, which may impact investor confidence.
See More
Simply Good Foods (SMPL) Earnings Transcript
See More
SMPL Announces Q2 Earnings Release Date
- Earnings Release Date: SMPL is set to release its Q2 earnings on April 9, with analysts projecting earnings per share of 40 cents, down from 46 cents last year, indicating potential profitability challenges for the company.
- New CEO Appointment: The naming of a new CEO has drawn market attention, as it may introduce a new strategic direction and management style, impacting future business development and investor confidence.
- Stock Price Increase: Following the earnings announcement, SMPL's stock gained 0.4%, reflecting a cautiously optimistic sentiment among investors regarding the new CEO's appointment and the upcoming earnings report, potentially signaling market expectations for the company’s future.
- Analyst Expectation Adjustment: Analysts have lowered their earnings expectations for SMPL, reflecting concerns about the company's future performance, which may influence investor decisions and stock price volatility.
See More
Iran War Continues to Drive Market Dynamics
- Oil Price Impact: The ongoing Iran war continues to drive market dynamics, with oil price fluctuations being a central concern; investors should monitor how stock markets react to oil price declines, despite the prevailing uncertainties.
- Inflation Data Focus: The upcoming Consumer Price Index (CPI) is expected to show a 2.7% year-over-year increase, reflecting the war's economic impact, which will guide the Federal Reserve's monetary policy adjustments and influence long-term interest rates.
- Earnings Reports: Delta Air Lines and others will report earnings next week, with Delta noting that a one-cent increase in jet fuel costs results in approximately $40 million in additional annual expenses, highlighting the significant impact of oil prices on the airline industry.
- Market Volatility Expectations: Given the uncertainty surrounding the war, stock markets are expected to remain volatile next week, necessitating close attention to the latest developments in the Iran conflict and their potential economic and market implications.
See More
Analysts Trim Fair Value for Simply Good Foods
- Fair Value Adjustment: Simply Good Foods' fair value has been trimmed from $28.00 to $27.90, reflecting analysts' cautious expectations regarding future growth and margins, which may impact investor confidence.
- Price Target Reduction: Jefferies has lowered its price target from $23 to $22 while maintaining a 'Buy' rating, indicating concerns over execution risks and margins that could lead to short-term stock price volatility.
- Long-term Growth Expectations: The long-term dollar revenue growth assumption has been reduced from 2.84% to 2.66%, and the net profit margin assumption has been lowered from 14.45% to 13.90%, which may affect investors' perceptions of the company's future profitability.
- Market Trend Analysis: Analysts highlight the rise of the 'easy protein' theme, and despite the price target reduction, Simply Good Foods is still viewed as an attractive investment opportunity to participate in the broader protein market, reflecting ongoing market interest in health-conscious eating trends.
See More
Congressional Members Invested in These 5 Stocks—Is It Worth Your Investment?
Congressional Stock Trading Legislation: Lawmakers from both parties have proposed banning members of Congress from trading individual stocks while in office, echoing sentiments from the STOCK Act of 2012, which aimed to enhance transparency in trading activities.
Recent Stock Purchases by Congress Members: Several members of Congress, including Representative Lisa McClain and Senator Shelley Moore Capito, have made notable stock purchases in companies like Big Bear AI and Simply Good Foods, raising questions about potential conflicts of interest.
Market Trends and Stock Performance: The article highlights significant stock performance trends, including a reported 52% gain for a top-performing member of Congress in stock trades, and discusses the implications of these trades on market perceptions and investor behavior.
Investor Caution and Research: Investors are advised to conduct thorough research before acting on congressional stock disclosures, as these trades may not serve as reliable trading signals due to the time lag in public disclosure and the potential for prior pricing adjustments.
See More
