Core Insights - Nomad Foods reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, but down from $0.60 per share a year ago, resulting in an earnings surprise of +3.64% [1] - The company generated revenues of $879.5 million for the quarter ended September 2025, slightly surpassing the Zacks Consensus Estimate by 0.01% and up from $845.81 million year-over-year [2] - Nomad Foods has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The future performance of Nomad Foods' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $903.84 million, while the estimate for the current fiscal year is $1.91 on revenues of $3.54 billion [7] Industry Context - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 31% of over 250 Zacks industries, suggesting potential challenges for stocks within this category [8] - Another company in the same industry, Campbell's, is expected to report quarterly earnings of $0.74 per share, reflecting a year-over-year decline of -16.9%, with revenues projected at $2.67 billion, down 3.8% from the previous year [9]

Third Quarter 2025 Performance - Organic growth contracted by 1.6% due to a 0.5% volume decline, but trends improved sequentially throughout the quarter[8] - Category sales growth accelerated to 2%+ value growth[8] - Adjusted gross margin decreased by 420 bps year-over-year due to higher COGS inflation[8] - Adjusted EBITDA declined 14% year-over-year, and Adjusted EPS fell 11%[8] - Total revenue was €752 million, a 2.2% decrease from €770 million in 3Q 2024[23] - Adjusted gross profit decreased by 15% from €248 million to €212 million[23] - Adjusted EBITDA was €143 million, a 14% decrease from €166 million[23] - Adjusted EPS was €0.49, an 11% decrease from €0.55[23] Cash Flow and Capital Allocation - The company returned cash to shareholders through share repurchases (€151 million YTD) and dividend payments (€70 million YTD), collectively up 100% year-over-year[8] - Adjusted free cash flow was €66 million for the nine months ended September 30, 2025, compared to €105 million for the same period in 2024[24] Outlook - Management expects to deliver full-year 2025 results near the low-end of its organic revenue, Adjusted EBITDA, and Adjusted EPS ranges[8] - The company is guiding to the low end of its existing 2025 ranges, with organic revenue between 0% to -2%, and Adjusted EBITDA between -3% to -7% year-over-year[27]

Financial Performance - For the nine months ended September 30, 2025, revenue decreased to €2,259.4 million, down 2.0% from €2,306.4 million in the same period of 2024[10]. - Profit for the period for the nine months ended September 30, 2025, was €147.4 million, a decrease from €175.7 million in the same period of 2024[12]. - Basic and diluted earnings per share for the nine months ended September 30, 2025, were €0.97, down from €1.08 in 2024[10]. - Profit for the period for the three months ended September 30, 2025, was €57.6 million, a decline of 18.9% compared to €70.3 million in 2024[47]. - For the three months ended September 30, 2025, the basic earnings per share decreased to €0.39 from €0.44 in 2024, representing a decline of 11.36%[62]. Cash Flow and Liquidity - Net cash generated from operating activities decreased by €34.7 million to €174.2 million, driven by a reduction in profit after tax of €28.3 million[5]. - Cash and cash equivalents at the end of the period were €193.6 million, a decrease from €403.3 million at the end of 2024[9]. - Cash generated from operations before tax and exceptional items for the nine months ended September 30, 2024, was €293.7 million, down from €277.3 million in 2025, indicating a decrease of 5.5%[18]. - The company reported cash and cash equivalents of €193.6 million as of September 30, 2025, compared to €403.3 million as of December 31, 2024, indicating a decrease of 52.0%[67]. Investment and Financing Activities - Net cash used in investing activities increased by €10.6 million to €55.1 million, with payments for property, plant, and equipment totaling €59.6 million[6]. - Net cash used in financing activities rose by €101.2 million to €331.6 million, including share repurchases of €151.4 million and dividend payments of €69.7 million[7]. - The company repurchased ordinary shares amounting to €151.4 million in 2025, significantly higher than €42.9 million in 2024[18]. - Dividends paid increased slightly from €67.4 million in 2024 to €69.7 million in 2025[18]. Assets and Liabilities - Total assets decreased to €6,313.1 million as of September 30, 2025, down from €6,431.6 million at the end of 2024[9]. - Total equity decreased to €2,554.3 million as of September 30, 2025, from €2,662.5 million at the end of 2024[9]. - Current liabilities slightly decreased to €1,115.3 million from €1,123.3 million at the end of 2024[9]. - The total financial assets at amortized cost as of September 30, 2025, amounted to €484.7 million, while total financial liabilities at amortized cost were €2,894.7 million, resulting in a net liability of €2,410.0 million[65]. Employee and Shareholder Information - The company’s employee benefit obligations are based on actuarial valuations that depend on various assumptions, including discount rates and expected salary increases[42]. - The total number of outstanding Management Share Awards increased to 3,415,714, up from 3,125,749 as of September 30, 2024, reflecting a net increase of 290,000 awards[85][89]. - The share-based payment expense for the three months ended September 30, 2025, was €2.4 million, compared to €3.4 million for the same period in 2024, indicating a decrease of approximately 29.4%[89]. - The Company reported a dividend of $0.17 per share for the quarter ended September 30, 2025, amounting to $26.2 million, which will be payable on November 26, 2025[102]. Business Operations and Strategy - The business transformation program initiated in 2020 aims to enhance decision-making and analytical capabilities, with ongoing phases expected to extend beyond 2026[51]. - The company has initiated a refinancing of its existing Senior USD and Senior EUR Loan facilities, with a new $620.0 million term loan and a new €880.0 million term loan expected to close on November 10, 2025[74]. - The company utilized €7.3 million of the restructuring provision during the nine months ended September 30, 2025, related to business transformation and supply chain optimization programs[79]. - The company operates in multiple jurisdictions with uncertain tax positions, which may lead to adjustments in future periods[44]. Changes in Management - The Company announced a change in Chief Executive Officer, with Stefan Descheemaeker stepping down effective January 1, 2026, and Dominic Brisby taking over[109].

Core Insights - Nomad Foods Limited is on track to deliver full-year results near the low end of its existing guidance ranges, with challenges faced in the third quarter of 2025 impacting overall performance [1][5]. Financial Performance - For the third quarter of 2025, revenue decreased by 2.2% to €752 million compared to the same period in 2024, with organic revenue declining by 1.6% due to a volume decline of 0.5% and a price/mix decline of 1.1% [3][4]. - Adjusted EBITDA for the third quarter decreased by 14.2% to €143 million, and adjusted EPS decreased by 10.9% to €0.49 [4][3]. - For the first nine months of 2025, revenue decreased by 2.0% to €2,259 million, with organic revenue down by 2.1% driven by a volume decline of 1.6% [3][4]. Management Commentary - CEO Stéfan Descheemaeker noted that while the third quarter results were in line with expectations, the company faced headwinds such as weather-related category pressure and soft performance in the UK, which offset strong performance in growth platforms [1]. - Co-Chairman Noam Gottesman expressed confidence in the underlying fundamentals of the business and highlighted the company's focus on innovation and efficiency programs to drive future growth [1]. Guidance - The company expects full-year organic revenue to be near the low end of its flat to -2% range, with adjusted EBITDA anticipated to be near the low end of the -3% to -7% year-on-year range [5]. - Adjusted EPS is expected to be near the low end of its €1.64 to €1.76 range, translating to a USD range of $1.89 to $2.02 based on the USD/EUR exchange rate as of September 30, 2025 [5]. Strategic Initiatives - Nomad Foods is focusing on a robust pipeline of innovation and renovation initiatives, with price increases for 2026 already communicated to the trade [1]. - The company has implemented a multi-year efficiency program aimed at providing further financial flexibility [1].

Core Insights - Nomad Foods Limited has successfully priced a USD 620 million term loan and a EUR 880 million term loan, both due in 2032, with interest rates linked to SOFR and EURIBOR respectively [1] - The company has extended its Revolving Cash Facility of EUR 175 million to 2032, indicating a strategic move to enhance liquidity and financial flexibility [1] - The net proceeds from the term loans will be utilized for repaying existing loans, transaction expenses, and general corporate purposes, reflecting a focus on financial restructuring [1] - The CFO of Nomad Foods expressed satisfaction with the refinancing outcome, highlighting the strength of the company's cash flow and portfolio [1] Company Overview - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [2] - The company is headquartered in the United Kingdom and is committed to providing high-quality, nutritious, and convenient food options to consumers [2]

Core Insights - The article discusses the current market environment, highlighting the performance of high P/E growth stocks and the potential shift towards undervalued stocks trading below their book value due to economic factors like tariffs and interest rates [2][3]. Group 1: Market Overview - High P/E growth stocks are currently performing well, but this trend may not last as economic pressures from tariffs and inflation set in [2]. - There is a suggestion to consider cheap stocks that trade below their book value, as some companies are undervalued despite the overall market's high valuations [3]. Group 2: Company Analysis - **Deutsche Bank**: Market cap of $64.76 billion, trading at a 15% discount to book value, P/E ratio of 10.24, debt-to-equity ratio of 2.29, and a dividend yield of 3.48% [4]. - **Lincoln National**: Market cap of $7.57 billion, shares at 88% of book value, P/E ratio of 6.97, debt-to-equity ratio of 0.60, and a dividend yield of 4.51% [5]. - **Matador Resources**: Market cap of $4.89 billion, trading at an 11% discount to book value, P/E ratio of 6.29, debt-to-equity ratio of 0.58, with a dividend yield of 3.43% [6]. - **Nomad Foods**: Market cap of $1.81 billion, trading at 59% of book value, P/E ratio of 8.05, debt-to-equity ratio of 0.82, and a dividend yield of 6.30% [7].

Core Points - Nomad Foods Limited will report its third quarter results for the period ending September 30, 2025, on November 6, 2025 [1] - A live question-and-answer session will follow the results announcement, scheduled to begin at 8:30 AM Eastern Daylight Time on the same day [2] - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [3] Company Information - Nomad Foods is headquartered in the United Kingdom and focuses on providing convenient, high-quality, and nutritious frozen food options [3] - The company has announced the launch of a refinancing initiative for its existing USD denominated Term Loan B, which amounts to USD 679 million [4] - Dominic Brisby has been appointed as the new Executive President and CEO-Elect, succeeding Stéfan Descheemaeker, who is retiring [5]

Core Viewpoint - Nomad Foods Limited is initiating a refinancing process for its existing Term Loans totaling USD 679 million and EUR 130 million, along with an extension of its EUR 175 million Revolving Cash Facility, with lender meetings expected to occur soon [1] Group 1: Refinancing Details - The refinancing involves USD denominated Term Loan B of USD 679 million and EUR denominated Term Loan B of EUR 130 million and EUR 553 million [1] - An associated extension of the Revolving Cash Facility of EUR 175 million is also part of the refinancing plan [1] Group 2: Company Overview - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [3] - The company is headquartered in the United Kingdom and focuses on providing convenient, high-quality, and nutritious food options [3]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Core Insights - The consumer staples sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Nomad Foods Ltd (NYSE:NOMD) has an RSI of 23.8, with a stock price decline of approximately 13% over the past month, closing at $11.96 [8] - JBS NV (NYSE:JBS) has an RSI of 25.7, with a stock price decrease of around 19% over the past month, closing at $12.81 [8] - Moolec Science SA (NASDAQ:MLEC) has an RSI of 15.1, with a significant stock price drop of about 46% over the past month, closing at $0.68 [8] Group 2: Company Developments - Nomad Foods announced the appointment of Dominic Brisby as the new CEO, effective Nov. 3, following the tenure of Stéfan Descheemaeker [8] - JBS received an Overweight rating from Stephens & Co. analyst Pooran Sharma, maintaining a price target of $19 [8] - Moolec Science received regulatory approval in Argentina for its Safflower GLASO Technology and appointed Valeria Falottico as CFO, indicating progress in its operations [8]