Group 1 - BellRing Brands (BRBR) is a notable stock within the Medical sector, currently outperforming the sector with a year-to-date return of approximately 6.6% compared to the sector average of 4.5% [4] - The Zacks Rank for BellRing Brands is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 6.9% increase in the consensus estimate for full-year earnings over the past 90 days [3][4] - The Medical group ranks 6 within the Zacks Sector Rank, which evaluates the strength of 16 different groups based on the average Zacks Rank of individual stocks [2] Group 2 - BellRing Brands is part of the Medical - Products industry, which includes 91 stocks and currently ranks 95 in the Zacks Industry Rank, with an average gain of 2.7% year-to-date [6] - Another stock, DaVita HealthCare (DVA), has also outperformed the sector with a year-to-date return of 26.2% and a Zacks Rank of 2 (Buy) [5] - The Medical - Outpatient and Home Healthcare industry, which includes DaVita HealthCare, has 19 stocks and is ranked 53, with a year-to-date gain of 7.2% [6]

Core Insights - Earnings growth is essential for the sustainability of both start-ups and established companies, as it directly influences share price and overall financial health [1][2] - Market expectations of earnings significantly impact stock price movements, often leading to declines in stock prices even when earnings grow if they do not meet these expectations [2][3] Earnings Estimates & Investment Decisions - Earnings estimates reflect analysts' views on various factors such as sales growth, product demand, and profit margins, serving as a critical tool for investment decisions [3] - Investors are encouraged to seek stocks with a history of earnings growth and positive revisions in earnings estimates [4] Screening Measures for Stock Selection - A screening process has been established to identify stocks with notable earnings growth and positive estimate revisions, utilizing parameters such as Zacks Rank and historical EPS growth [5][6] - Specific criteria include a Zacks Rank of 2 or lower, a year-over-year earnings growth of at least 5%, and positive revisions in quarterly and annual earnings estimates [6][7] Highlighted Stocks - BellRing Brands (BRBR) has a Zacks Rank of 1 (Strong Buy) with an expected earnings growth rate of 34.9% for the current year [7] - ResMed (RMD) also holds a Zacks Rank of 1, with an expected earnings growth rate of 17.9% [8] - NVIDIA (NVDA), ranked 2 (Buy), is projected to have an earnings growth rate of 84.7% for the current year [8] - Transdigm Group (TDG), with a Zacks Rank of 2, has an expected earnings growth rate of 21.7% [9]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: BellRing Brands (BRBR) - BellRing Brands currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, BRBR shares increased by 4.2%, while the Zacks Medical - Products industry saw a slight decline of 0.09% [5] - In a longer timeframe, BRBR's shares rose by 8.82% over the past month, significantly outperforming the industry's 0.66% [5] - Over the last quarter, BRBR shares increased by 6.19%, and over the past year, they gained 64.46%, compared to the S&P 500's increases of 4.25% and 27.92%, respectively [6] Trading Volume - The average 20-day trading volume for BRBR is 1,197,078 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 7 earnings estimates for BRBR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.67 to $1.78 [9] - For the next fiscal year, 7 estimates have also moved higher without any downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, BRBR is positioned as a strong buy candidate for investors seeking short-term opportunities [10]

BellRing Brands (BRBR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth sto ...

● The convenient nutrition category continued growth (+5%)1, with strong ready-to-drink ("RTD") growth partly offset by slowing growth in powders and bars. Premier Protein RTD Shake Growth Strong Across All Channels 654 890 8280 40 45 50 55 60 65 70 75 80 85 0 200 400 600 800 1,000 TDPs % ACV Q1 Q2 Q3 Q4 Q1 Q2 +59% +122% +86% +55% +66% +52% YOY % Δ Notes: ● Premier Protein RTD shake consumption was up (+29%)2in Q2 FY2024. ○ RTD shake market share remained strong (21%)1 and total distribution points ("TDPs") ...

Financial Data and Key Metrics Changes - Net sales for the quarter were $495 million, up 28% over the prior year, driven by strong demand for Premier Protein shakes [12] - Adjusted EBITDA was $104 million, an increase of 53%, with adjusted EBITDA margins at 21% [12] - Gross profit grew 40% to $164 million, with an increase in gross profit margin of 280 basis points to 33.2% [15] - SG&A expenses as a percentage of net sales were 14%, roughly flat to the prior year [16] Business Line Data and Key Metrics Changes - Premier Protein net sales grew 34%, driven by strong volume growth for RTD shakes and powders [13] - Dymatize net sales increased 5%, benefiting from increased distribution and promotional activity, but faced challenges in specialty channels [14] - Premier Protein powder consumption grew 52% in Q2, supported by brand investments and distribution gains [8] Market Data and Key Metrics Changes - The convenient nutrition category grew 5% in Q2, with RTD leading the category at 10% growth [33] - Premier Protein's household penetration reached over 18%, with a 1 percentage point increase from Q1 [6] - Dymatize maintained record high household penetration despite an overall consumption decline of 8% in the market [9] Company Strategy and Development Direction - The company plans to increase investment in marketing and promotion, including a national campaign featuring Christian McCaffrey [40] - The strategy includes expanding shake production capacity to support robust growth and meet demand [11][32] - The company aims to mainstream the powder category with Premier Powder, similar to the success of Premier Protein in the RTD segment [41][127] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong first-half results and robust demand trends [10][31] - The company raised its fiscal 2024 guidance for net sales to $1.93 billion to $1.99 billion, reflecting strong consumption trends [19] - Management noted that product and logistics costs are expected to increase in the second half, with pricing actions planned for late Q4 [20] Other Important Information - The company generated $16 million in cash flow from operations in Q2 and $90 million in the first half [17] - As of March 31, net debt was $761 million, with net leverage at 1.9 times [18] - The company repurchased 400,000 shares at an average price of $56.46 per share, totaling $23 million [18] Q&A Session Summary Question: What is the potential for exceeding the high end of sales guidance? - Management indicated that they have the production capacity to meet high demand and will assess inventory needs in Q4 [42][52] Question: What were the learnings from the recent promotions? - Management noted that successful promotions were driven by strong retailer support and effective displays, leading to increased household penetration [56][61] Question: How is the input cost environment expected to change? - Management expects costs to rise in the second half, particularly for powders, with a significant increase anticipated from Q2 to Q3 [64] Question: How is the consumer base changing? - Management confirmed that the brand is attracting a diverse consumer base, with a fairly even male-female split [123] Question: What is the outlook for Dymatize in the competitive e-commerce landscape? - Management acknowledged increased competition but remains optimistic about Dymatize's position and plans to enhance marketing efforts [95][132]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for Q1 and H1 2024 show significant growth in sales, earnings, and cash flow [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales and earnings significantly increased for both the three and six-month periods ended March 31, 2024 Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Six Months Ended March 31, 2024 | Six Months Ended March 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $494.6 | $385.6 | $925.0 | $748.3 | | **Gross Profit** | $164.3 | $117.1 | $312.3 | $238.9 | | **Operating Profit** | $91.0 | $58.0 | $164.0 | $133.2 | | **Net Earnings** | $57.2 | $30.9 | $101.1 | $75.1 | | **Diluted EPS** | $0.43 | $0.23 | $0.76 | $0.56 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $765.0 million, improving the stockholders' deficit, while total liabilities remained stable Balance Sheet Summary (in millions) | Account | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $513.2 | $424.2 | | **Total Assets** | $765.0 | $691.6 | | **Total Liabilities** | $1,012.7 | $1,015.1 | | **Total Stockholders' Deficit** | $(247.7) | $(323.5) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $90.5 million, leading to a net increase in cash Cash Flow Summary for Six Months Ended March 31 (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $90.5 | $20.3 | | **Net Cash Used in Investing Activities** | $(0.5) | $(0.5) | | **Net Cash Used in Financing Activities** | $(59.2) | $(30.7) | | **Net Increase (Decrease) in Cash** | $30.9 | $(10.3) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue breakdown, related party transactions, debt structure, and legal contingencies, including a $21.0 million litigation liability Net Sales by Product (in millions) | Product | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Six Months Ended March 31, 2024 | Six Months Ended March 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Shakes and other beverages** | $397.9 | $299.9 | $748.1 | $596.9 | | **Powders** | $84.1 | $73.8 | $153.8 | $129.9 | | **Other** | $12.6 | $11.9 | $23.1 | $21.5 | | **Total Net Sales** | $494.6 | $385.6 | $925.0 | $748.3 | - The company is involved in multiple lawsuits, with an **estimated liability of $21.0 million** recorded for the Joint Juice litigation[54](index=54&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - The company discontinued its PowerBar business in North America in August 2023, resulting in **full amortization and write-off of associated intangible assets by March 31, 2024**[47](index=47&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong financial performance driven by Premier Protein volume growth, improved operating profit, and enhanced liquidity [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Net sales and operating profit increased significantly due to Premier Protein volume growth and lower raw material costs - Sales of Premier Protein products increased by **$106.0 million (34%) in Q2** and **$164.2 million (26%) in the first six months**, driven by **45% and 32% higher volumes** respectively[67](index=67&type=chunk) - The increase in operating profit was driven by **higher net sales and lower net product costs**, partially offset by increased employee-related and advertising expenses, and accelerated amortization[74](index=74&type=chunk)[77](index=77&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with increased operating cash flow, full repayment of credit facility, and continued share repurchases - Cash provided by operating activities increased by **$70.2 million year-over-year** for the six months ended March 31, 2024, primarily due to **moderated inventory levels**[85](index=85&type=chunk) - As of March 31, 2024, the company had **no outstanding borrowings** under its **$250.0 million Revolving Credit Facility**, providing full availability[81](index=81&type=chunk) - During the six months ended March 31, 2024, the company repurchased **0.6 million shares** of its common stock for a total cost of **$32.5 million**[81](index=81&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks including commodity price, foreign currency, and interest rate fluctuations through various strategies - The company's primary market risks include **commodity price risk** (managed via purchase commitments), **foreign currency risk** (from international subsidiary), and **interest rate risk** (primarily impacting fixed-rate Senior Notes)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) [Item 4. Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no significant changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2024[103](index=103&type=chunk) - **No significant changes** were made to the company's internal control over financial reporting during the quarter ended March 31, 2024[104](index=104&type=chunk) [PART II. OTHER INFORMATION](index=21&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12 of the financial statements - Details regarding legal proceedings are provided in **Note 12** within the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report[109](index=109&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - As of the report date, there have been **no material changes** to the risk factors previously disclosed in the company's Annual Report on Form 10-K filed on November 21, 2023[110](index=110&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 405,442 shares and approved a new $300 million share repurchase authorization effective March 11, 2024 Share Repurchases for the Three Months Ended March 31, 2024 | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2024 | 167,430 | $52.56 | | Feb 1 - Feb 29, 2024 | 61,497 | $56.35 | | Mar 1 - Mar 31, 2024 | 176,515 | $60.20 | | **Total** | **405,442** | **$56.46** | - On February 29, 2024, the Board of Directors approved a **new $300 million share repurchase authorization**, effective March 11, 2024, replacing the previous one[112](index=112&type=chunk) [Item 5. Other Information](index=21&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2024 - No director or officer adopted or terminated a **Rule 10b5-1 trading arrangement** during the three months ended March 31, 2024[113](index=113&type=chunk) [Item 6. Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and the Interactive Data File - The report includes several exhibits, such as **CEO and CFO certifications** pursuant to Sarbanes-Oxley Act Sections 302 and 906, and the **Interactive Data File (iXBRL)**[115](index=115&type=chunk)

BellRing Brands (BRBR) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.35%. A quarter ago, it was expected that this nutritional supplements company would post earnings of $0.39 per share when it actually produced earnings of $0.43, delivering a surprise of 10.26%.Over the last fou ...

Adjusted EBITDA* was $204.2 million, an increase of 33.6%, or $51.3 million, compared to $152.9 million in the prior year period. Outlook BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forwardlooking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be m ...