Packaged food company Simply Good Foods (NASDAQ: SMPL) will be reporting earnings this Thursday before market hours. Here’s what to expect.
Simply Good Foods missed analysts’ revenue expectations last quarter, reporting revenues of $326 million, down 9.4% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ gross margin 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, the market is expecting Simply Good Foods’s revenue to decline 10.8% year on year, a reversal from the 13.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Simply Good Foods has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Simply Good Foods’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 0.7%, and McCormick reported revenues up 16.7%, topping estimates by 1.2%.
Read our full analysis of General Mills’s results here and McCormick’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 8.9% on average over the last month. Simply Good Foods is up 10.2% during the same time and is heading into earnings with an average analyst price target of $17.33 (compared to the current share price of $13.15).
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