The Simply Good Foods Company Down 7.27% To $38.21 After Earnings Beat

Simply Good Foods Co (SMPL) reported better than expected earnings this morning for Q3 2022.

The Simply Good Foods Company's earnings came in at an EPS of $0.44 per share, 26.00% higher than estimates for an EPS of $0.35 per share. The firm's earnings are up 2% since reporting $0.43 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $294.1 million. The Consumer Defensive company managed to surpass those expectations for its third quarter with revenue of $316.5 million, a positive revenue surprise of $22.4 million (8%). The firm managed 11% growth year-over-year due to The Simply Good Foods Company reporting quarterly revenue of $284 million in its year-ago quarter. The Simply Good Foods Company achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 7.27% to $38.21 after the report.

The Simply Good Foods Company's revenue expanded at a faster pace than earnings, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 65. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Simply Good Foods provides low-carbohydrate, high protein bars, shakes, and other products such as confections, chips, and cookies under the Atkins and Quest brands. The firm also licenses its brand to Bellisio Foods, which produces frozen meals and pizza. Atkins products are modeled after the philosophy of Dr. Robert Atkins, whose 1972 book, "Dr. Atkins' Diet Revolution," conferred the benefits of a high protein/low carbohydrate diet, and is credited with launching the low-carb diet trend. Quest, acquired in November 2019, also follows the high protein/low carbohydrate philosophy and targets active lifestyle consumers. Ninety-six percent of the firm's sales occur within North America.