Packaged food company Simply Good Foods (NASDAQ: SMPL) will be reporting results this Tuesday before the bell. Here’s what to expect.
Simply Good Foods beat analysts’ revenue expectations last quarter, reporting revenues of $357 million, down 6.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS 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 11.3% year on year, a further deceleration from the 1.8% decrease 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 shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Conagra’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and General Mills reported a revenue decline of 2.8%, topping estimates by 0.9%. Conagra traded down 6.6% following the results while General Mills was also down 1.7%.
Read our full analysis of Conagra’s results here and General Mills’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.9% on average over the last month. Simply Good Foods is up 8.4% during the same time and is heading into earnings with an average analyst price target of $13.75 (compared to the current share price of $10.41).
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