Overview

* Simply Good Foods ( SMPL ) fiscal Q3 revenue just misses analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 beats consensus, indicating strong operational performance, per LSEG data

* OWYN acquisition contributed significantly to sales growth, organic growth driven by Quest

Outlook

* Simply Good Foods ( SMPL ) expects FY 2025 net sales to increase 8.5% to 9.5%.

* Company anticipates FY 2025 adjusted EBITDA growth of 4% to 5%.

* OWYN net sales projected at $145 mln for FY 2025.

* Inflation and tariffs expected to impact gross margin by 200 basis points.

Result Drivers

* OWYN ACQUISITION - Contributed $33.6 million to net sales growth, significantly boosting overall revenue

* ORGANIC GROWTH - Driven by Quest brand, organic net sales grew 3.8%, despite a decline in Atkins sales

* GROSS MARGIN DECLINE - Decreased by 350 basis points due to inflationary pressures and OWYN integration

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $381 mln $381.70

Revenue mln (11

Analysts

)

Q3 Beats $0.51 $0.5 (9

Adjusted Analysts

EPS )

Q3 EPS $0.4

Q3 Net $41.10

Income mln

Q3 Gross 36.4%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "hold."

* Wall Street's median 12-month price target for Simply Good Foods Co ( SMPL ) is $38.00, about 14.9% above its July 9 closing price of $32.34

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)