02:05 PM EDT, 07/03/2024 (MT Newswires) -- Maple Leaf Foods ( MLFNF ) is expected to report second quarter results in early August.

National Bank projects second quarter EPS of $0.17 versus consensus at $0.20; last year was $0.00. Analyst Vishal Shreedhar's expectation for higher EPS improvement reflects higher gross margin, partly offset by higher SG&A, higher D&A and higher interest expense.

NBF models Q2/24 gross margin expansion of 275 bps y/y, reflecting an improvement in the pork complex, remaining benefits from MFI's major capital projects, and favourable mix. National calculates a Q2/24 pork industry margin of $13.09/cwt (data until May 2024). The five-year normalized (2015-2019) average was $14.49/cwt. There also remains ~60-80 bps of margin benefit from the London Poultry and Bacon Centre of Excellence projects.

Maintain Outperform rating; price target is $29.

Price: 22.89, Change: -0.06, Percent Change: -0.26