The Simply Good Foods Company ($SMPL) Earnings (Q2 FY22)

 The Simply Good Foods Company ($SMPL) Earnings and Opinion:


The Simply Good Foods Company is a company in the Consumer defensive sector and operates in the Packaged Foods industry. The company is a consumer packaged food and beverage company serving both North American and International customers. Simply Good Foods was founded in 2017 and is currently headquartered in Denver, Colorado. The company was first publicly traded on the stock market in 2017.

Simply Good Foods Company EPS and Revenue (Q2 FY22):

  • EPS of $0.36 beating expectations of $0.28
  • Revenue of $296.7M beating expectations of $275.87M
  • EPS was up 44% (YOY) and Revenue was up 28.7% (YOY)
Simply Good Foods Company Q2 Highlights:
  • Net Income of $18.5M
  • Adjusted EBITDA increased 27.1%
  • Adjusted EBITDA of $54.2M
Simply Good Foods Company FY22 Outlook:
  • Net Sales to increase 13-15% compared to last year
  • Adjusted EBITDA grow slightly less than net sales growth rate
  • Adjusted Diluted EPS to increase more than Adjusted EBITDA
Opinion:
Simply Good Foods Company is currently moving higher after reporting earnings this morning. The company produced a solid earnings report with both EPS and Revenue beating expectations. They both increased by solid growth rates compared to a year ago. Simply Good Foods also saw Net Income of 18.5M and an increase of 27.1% in adjusted EBITDA. They also commented on outlook for the rest of the year which shows an increase in net sales of about 13-15%. This company is definitely headed in the right direction and is starting to pick up companies such as Quest and Atkins. They have also showed tremendous growth as a company over the life of the company. The stock has seen nothing but growth over its 5 years on the stock market. Personally, I really like the attributes of this company. They have reported some solid earnings and the financials look square. However, I would like to see them keep a little more cash now that the business is starting to develop, and they need to start hammering some of that debt they still owe. For a young company, they are not in a bad place at all, but I am going to stick to roots and invest in companies that have been around forever and are staples such as Hormel and others. If you like volatility and want to have potential to return some big gains, then you might want to pull the trigger on this stock. I just see a more safer play with Hormel and other stocks, and plus they pay a dividend, where Simply Good Foods isn't quite to that point yet.


*Information from Yahoo Finance and Simply Good Foods Company
*Estimates attained from Zacks

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