Simply Good Foods, the nutritious-snacks company best known for selling Atkins-diet branded snacks, reported a strong sales and earnings beat for its fiscal second-quarter early Wednesday. SMPL stock gained following the report.
Simply Good Foods Earnings
Estimates: Wall Street expected Simply Good Foods earnings to increase 12% to 28 cents, according to FactSet. Revenue was expected to come in at $275 million, a 19% gain.
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Results: Earnings jumped 44% to 36 cents a share. Revenue climbed to $296.72 million, a 29% gain.
SMPL Stock
SMPL stock rose 4.7% to 40.21 on Wednesday. Shares had fallen 3.6% on Tuesday. The stock is 14 weeks into a consolidation, and holding support at its 10- and 40-week moving averages. The base pattern offers a buy point at 43.27.
Shares have a 96 Composite Rating. Their EPS Rating is 96. The relative strength line of the stock has moved sideways for much of the past year.
Simply Good Foods was formed in 2017 after low-carb diet brand Atkins merged with the blank-check company Conyers Park Acquisition Corp. Simply Good Foods sells shakes, snacks and protein bars under the Atkins and Quest product lines.
The company in January said first-quarter sales had benefited as consumer foot traffic in stores rebounded following 2020's coronavirus lockdowns. Still, SMPL stock fell hard after the results.
Simply Good Foods at the time warned on rising ingredient costs and supply-chain snags. Management said those costs would shrink margins during the fiscal year.
'Snacking Occasions' Help SMPL Stock
Still, it said people were returning to their workplaces, translating to more consumption of Atkins and other snack bars. However, Simply Good Foods said it remained cautious on calling any trends due to the explosion of omicron cases earlier in the year.
"The number of snacking occasions of bars is being impacted negatively by people not being back at work," CEO Joseph Scalzo said during the company's earnings call in January.
"Now the good news is . . . all other forms, non-shake, non-bar business is doing really well," he said. "Those are incremental consumption occasions, highly less correlated to being at work, and that's starting to pick up some of the slack from a buy rate standpoint."
