Shares of Simply Good Foods Company (SMPL) jumped 5.60% in pre-market trading on Wednesday 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. This surpassed analysts' expectations of $354.4 million. 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.
Simply Good Foods' strong performance was driven by organic growth and the successful integration of its OWYN acquisition. The company reported that its Quest brand saw particularly strong point-of-sales growth of about 13%. Despite challenges in the Atkins brand, which saw a 10% decline in retail takeaway, the overall company retail takeaway increased by approximately 7%.
Investors were also encouraged by the company's 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%. This 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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