STKL Earnings Prediction
The chart below shows how STKL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STKL sees a +2.11% change in stock price 10 days leading up to the earnings, and a +7.32% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
STKL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
193.67M
6.63%
9.90%
Gross Margin
9.64%
-63.40%
-37.65%
Operating Margin
0.64%
-95.89%
-82.75%
Net Margin
-3.11%
223.96%
-0.32%
EPS
0.02
118.18%
-140.00%
No Data Available
STKL Earnings Analysis
Sunopta Inc Corporation (STKL.O) Earnings Conference Call
Positive
Q4 Revenue Growth Analysis: Revenue grew 9% in Q4 2024, driven by a 13% increase in volume, reflecting broad-based gains across segments, products, and customers.
EBITDA Growth and Margin Improvement: Adjusted EBITDA increased by 20%, with an adjusted EBITDA margin improvement of 130 basis points to 13.4%.
Customer Growth Performance: Four of the top five customers experienced double-digit growth, averaging 13% growth in Q4.
Operational Capacity Enhancement: The startup phase in Midlothian was completed, enhancing operational capacity and efficiency.
Volume Growth Achievement: The company achieved a significant 21% volume growth in 2024, outperforming the current food and beverage consumer landscape.
Plant-Based Milk Growth: The shelf-stable plant-based milk market and ready-to-drink protein shakes category are experiencing steady growth, with the latter seeing strong double-digit growth.
Adjusted EBITDA Target: The company is targeting a $125 million adjusted EBITDA annual run rate by the end of 2025, supported by expected revenue growth of 7% to 11%.
Free Cash Flow Improvement: Free cash flow generation improved significantly, with cash provided by operating activities increasing to $52 million compared to $4 million in 2023.
Debt Reduction Achievement: Debt was reduced by $25 million, achieving a year-end net leverage target of 3 times, down from 3.4 times in the previous quarter.
Strong Operating Cash Flow: The company anticipates continued strong operating cash flow and plans to focus on maintenance and productivity capital expenditures.
Negative
Gross Profit Decline: Gross profit decreased by $3.9 million compared to the prior year, primarily due to increased costs associated with the startup at Midlothian.
Gross Margin Decline: Adjusted gross margin declined to 16.1% from 17.2% in the prior year, attributed to incremental depreciation for newly launched production assets and short-term investments.
Continuing Operations Loss Increase: Loss from continuing operations was $4.6 million, compared to a loss of $3 million in the prior year period, indicating a worsening financial position.
Operational Performance Delays: The company anticipates that it will take a couple of quarters for new positions focused on maintenance and reliability to deliver improvements in efficiency and margins, suggesting potential delays in operational performance.
Interest Expense Projections: Interest expense is expected to be between $24 million to $26 million, indicating ongoing financial burdens.
Profitability Challenges Amid Growth: Despite strong cash generation, the company still reported a loss from continuing operations, highlighting challenges in profitability despite revenue growth.
STKL FAQs
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STKL Earning Call Sentiment
SunOpta Inc. (STKL) Q4 2024 Earnings Call Transcript
STKL.O
1.5%Positive
The company's financial performance shows mixed results with revenue growth and EBITDA improvement, but declining margins and increased losses. The guidance remains optimistic, yet there are concerns about supply chain challenges and regulatory risks. The Q&A section reveals some uncertainty in management responses and the impact of economic factors. Although there is a focus on debt reduction and shareholder returns, these factors balance each other out, resulting in a neutral sentiment for the stock price prediction.
