Overview
Snack food maker's fiscal Q1 sales declined, missing analyst expectations
Adjusted EBITDA for fiscal Q1 grew 7% yr/yr
Company announced new $50 mln share repurchase authorization
Outlook
Company expects $20 mln annualized savings from Project Apollo initiatives
J & J Snack Foods announces new $50 mln share repurchase authorization
Company plans innovative product launches in second quarter, including Dippin’ Dots for retail
Result Drivers
PORTFOLIO RATIONALIZATION - Sales decline attributed to strategic portfolio rationalization in bakery business, impacting Food Service segment
GROSS MARGIN IMPROVEMENT - Gross margin improved to 27.9% due to Apollo transformation initiatives and favorable product mix
PRETZEL SALES GROWTH - Pretzel sales increased 6.9%, driven by Bavarian formula pretzels
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Miss | $343.78 mln | $363.56 mln (4 Analysts) |
Q1 Adjusted EPS | Miss | $0.33 | $0.35 (2 Analysts) |
Q1 EPS | $0.05 | ||
Q1 Net Earnings | $883,000 | ||
Q1 Gross Profit | $96.01 mln | ||
Q1 Operating Income | $637,000 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for J&J Snack Foods Corp is $130.00, about 36.6% above its February 2 closing price of $95.20
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago
Press Release: ID:nGNXbxS0cl
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)