The Simply Good Foods Company (SMPL) is set to release its fourth-quarter fiscal 2023 earnings on October 24, before the opening bell. Analysts anticipate a strong quarter for the company, with estimated revenues of $320.3 million, a 16.8% increase from the previous year. The consensus estimate for earnings per share is 44 cents, reflecting a 22.2% growth compared to the same period last year.
Factors to Consider
Simply Good Foods has been executing its strategic initiatives effectively, which is expected to positively impact its fourth-quarter results. The company’s focus on brand-building efforts and cost control measures have strengthened its brands and improved its financial performance. Management has stated that the company is on track to meet its full-year objectives, providing further confidence in its expected performance for the fourth quarter.
Furthermore, Simply Good Foods expects its net sales growth to outpace retail takeaway, driven by the recovery from a major retail customer inventory reduction period in the prior year. The company has also implemented efficient cost-controlling efforts and is expected to benefit from moderating input costs, leading to improved margins for the quarter.
However, the company does face challenges from an inflationary operating landscape, which may impact its operating expenses. Despite this, Simply Good Foods’ strong execution and strategic initiatives are expected to help mitigate any potential negative impacts.
Zacks Earnings Prediction
Based on the Zacks model, Simply Good Foods is predicted to surpass earnings expectations for the quarter. A positive Earnings ESP (+1.35%) and a Zacks Rank of 2 increase the likelihood of an earnings beat. Investors can take advantage of this prediction by positioning themselves ahead of the earnings release.
Other Stocks to Watch
Aside from Simply Good Foods, there are other companies that also have the potential to beat earnings estimates:
- The Boston Beer Company (SAM): With an Earnings ESP of +8.81% and a Zacks Rank of 3, this company is expected to see bottom-line growth in the upcoming quarters.
- Colgate-Palmolive Company (CL): With an Earnings ESP of +0.37% and a Zacks Rank of 3, Colgate-Palmolive is likely to experience increases in both revenues and earnings.
- Hershey (HSY): Hershey has an Earnings ESP of +1.29% and a Zacks Rank of 3, indicating potential growth in both top and bottom lines.
These stocks present additional investment opportunities that investors should consider. Each company has unique strengths and growth potential that can contribute to a well-diversified portfolio.
For more information on upcoming earnings announcements and to stay informed about the latest market trends, check out the Zacks Earnings Calendar.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.