Shares of Simply Good Foods Company (SMPL) surged 9.01% in pre-market trading after the company reported better-than-expected fiscal second-quarter results and reaffirmed its full-year outlook. The nutritional foods and snacking products maker posted net sales of $359.7 million for the quarter ended March 1, 2025, up 15.2% from $312.2 million in the same period last year, surpassing analysts' expectations of $354.4 million.
The company's strong performance was driven by organic growth and the successful integration of its OWYN acquisition. Simply Good Foods reported that its Quest brand saw particularly strong point-of-sales growth of about 13%, while its newly acquired OWYN brand contributed $33.8 million to net sales. The company's adjusted earnings per share came in at $0.46, beating the consensus estimate of $0.40 and improving from $0.40 in the year-ago quarter.
Investors were also encouraged by Simply Good Foods' decision to reaffirm its fiscal year 2025 outlook, projecting net sales growth of 8.5% to 10.5% and Adjusted EBITDA growth of 4% to 6%. CEO Geoff Tanner expressed satisfaction with the results, stating, "We are executing well, adding new doors, winning with innovation, and driving brand awareness and household penetration of our brands." The positive guidance, combined with the earnings beat, appears to be fueling the pre-market stock surge as investors show confidence in Simply Good Foods' continued growth trajectory and ability to navigate the competitive nutritional foods market.
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