Key Takeaways CPRX, STKL, GAMB and ORN show rising cash flow trends versus their 5-year per-share averages. Each stock meets criteria, including price above $5, top broker ratings and a VGM Score of B or better. EPS estimates for 2025 have been revised upward recently, reflecting positive sentiment and momentum.We are already into the second-quarter reporting cycle, and stocks with top-line growth and increasing profit numbers might be popular choices. Moreover, choosing stocks based on a company’s effici ...

Core Viewpoint - SunOpta (STKL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4][5]. Company Performance and Outlook - The upgrade for SunOpta suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - SunOpta is projected to earn $0.18 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 12.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions, which positions SunOpta favorably for potential market-beating returns [9][10].

Group 1 - The decision was made to downgrade SunOpta, a company specializing in plant-based beverages such as oat, almond, soy, coconut, and rice milks and creamers [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a stock model account with over 50 stocks, in-depth cash flow analyses of exploration and production firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the oil and gas investment service [3]

Company Performance - SunOpta reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.02 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $201.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.12%, compared to year-ago revenues of $182.85 million [2] - Over the last four quarters, SunOpta has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - SunOpta shares have declined approximately 38.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on $182 million in revenues, and $0.15 on $775 million in revenues for the current fiscal year [7] - The estimate revisions trend for SunOpta is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Zacks Industry Rank for Food - Miscellaneous places it in the top 38% of over 250 Zacks industries, suggesting that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Flowers Foods, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year change of -2.6%, with revenues anticipated to be $1.59 billion, up 1% from the year-ago quarter [9][10]

Exhibit 99.1 FOR IMMEDIATE RELEASE SUNOPTA ANNOUNCES FIRST QUARTER FISCAL 2025 FINANCIAL RESULTS Revenue from continuing operations increased 9% to $202 million, driven by continued volume growth Earnings from continuing operations of $4.8 million compared to $3.8 million in the prior year Adjusted EBITDA from continuing operations increased 2% to $22.4 million Adjusted EPS of $0.04 compared to $0.02 in the prior year Share Repurchase Authorization of up to $25 million Raising 2025 outlook Minneapolis, Minn ...

SunOpta Inc. (NASDAQ:STKL) Q4 2024 Earnings Conference Call February 26, 2025 5:30 PM ET Company Participants Reed Anderson – ICR Brian Kocher – Chief Executive Officer Greg Gaba – Chief Financial Officer Conference Call Participants Jim Salera – Stephens Jon Andersen – William Blair Andrew Strelzik – BMO Ryan Meyers – Lake Street Capital Markets Alex Fuhrman – Craig-Hallum John Baumgartner – Mizuho Securities Daniel Biolsi – Hedgeye Risk Management Operator Greetings and welcome to SunOpta’s Fourth Quarter ...

SunOpta Inc. Earnings Presentation Q4 2024 © SunOpta Inc. 2025 1 1 Fueling the Future of Food SunOpta Inc. Earnings Presentation Q4 2024 General Disclosures This presentation contains forward-looking statements that reflect the Company's current views about future events and financial performance. These forward-looking statements are subject to important risks and uncertainties, as well as other factors and assumptions that could cause actual results to differ materially from those anticipated or implied in ...

Customer Concentration - In 2024, the top ten customers accounted for approximately 80% of SunOpta's revenues[17] - In 2024, the top ten customers accounted for approximately 80% of the company's revenues[17] Employee Engagement and Retention - The voluntary employee turnover rate decreased to 16.3% in 2024, down from 20.2% in 2023[27] - The voluntary turnover rate in 2024 was 16.3%, down from 20.2% in 2023[27] - The company has implemented various employee retention programs aimed at increasing engagement and reducing turnover[27] - The company employs 1,248 full-time employees in North America as of December 31, 2024[27] Health and Safety - SunOpta's Total Recordable Incident Rate (TRIR) ended the year at 2.25, indicating a focus on employee health and safety[27] - The Total Recordable Incident Rate (TRIR) ended the year at 2.25[27] - The company is subject to various safety regulations, including those from OSHA, to protect employees from accidents[35] Innovation and Development - The company operates a 24,000 square foot innovation center and pilot plant, employing 21 food scientists dedicated to product development[23] - The innovation center and pilot plant spans 24,000 square feet and supports a team of 21 food scientists and technologists[23] Sustainability and Environmental Commitment - Over 95% of SunOpta's packaging by weight is recyclable, reflecting the company's commitment to sustainability[20] - Over 95% of the company's packaging by weight is recyclable, with ongoing efforts to innovate packaging technologies[20] - The company is committed to meeting all applicable environmental compliance requirements, including air quality and waste treatment regulations[38] - The company is committed to environmental, social, and governance (ESG) principles, with oversight from the Corporate Governance Committee[28] Regulatory Compliance - The company is subject to a wide range of governmental regulations in the U.S. and Canada, impacting various aspects of its operations, including food safety and environmental compliance[29] - The company maintains compliance with USDA organic regulations and has an organic testing and verification process in place[31] - The company believes it is in material compliance with state and local food safety, labeling, and packaging regulations, including California's Proposition 65[34] - The company maintains compliance with various U.S. and Canadian regulations related to food safety, labeling, and environmental standards[29] - In 2022, the Government of Canada amended the Food and Drug Regulations, requiring manufacturers to update labels on prepackaged foods by December 31, 2025[43] - The Canadian Food Inspection Agency (CFIA) has the authority to inspect and recall products deemed a risk to public health, including fresh produce and processed foods[43] Financial Reporting and Risks - SunOpta's financial reporting is expressed in thousands of U.S. dollars, ensuring clarity in financial disclosures[11] - The company anticipates potential impacts from inflationary pressures on raw material, packaging, labor, and transportation costs[12] - The company faces risks related to supply chain disruptions and fluctuations in the cost and availability of raw materials[13] Intellectual Property Protection - The company has a policy to protect its technology, brands, and trademarks through patents and confidentiality agreements[39] - The company relies on patents, trade secrets, and trademarks to protect its technology and products, filing patent applications in the U.S. and selected foreign jurisdictions[39] - The company believes it has sufficient rights to use all proprietary technology necessary for manufacturing and marketing its products, but acknowledges risks related to patent applications and potential challenges from third parties[40] - The company utilizes confidentiality agreements and internal policies to safeguard its proprietary technology and processes, although there is a risk of outside partners gaining access[41] Waste Management - The company has agreements with local sewer districts to treat waste at specified limits, requiring regular reporting and inspections[37]

Revenue and Growth - Revenue from continuing operations increased 8.9% to $193.9 million, driven by 12.8% volume growth[6] - The company expects revenue growth of 7% to 11% and adjusted EBITDA growth of 9% to 16% for fiscal 2025[15] Financial Performance - Loss from continuing operations was $4.6 million compared to a loss of $3.0 million in the prior year period[10] - Adjusted EBITDA from continuing operations increased 20% to $26.1 million, representing 13.5% of revenues[11] - Gross profit decreased by 15.4% to $21.2 million, with a gross profit margin of 10.9%[8] - Adjusted earnings from continuing operations were $7.6 million or $0.06 per diluted share, compared to $4.5 million or $0.04 per diluted share in the prior year[11] - The company reported a net loss of $17.4 million for the year ended December 28, 2024, a significant improvement from a net loss of $178.8 million in the prior year[24] - Adjusted earnings from continuing operations for the year ended December 28, 2024, were $13,416 million, or $0.11 per share, compared to $5,847 million, or $0.05 per share, for the year ended December 30, 2023[34] Cash Flow and Assets - Cash provided by operating activities increased to $52.3 million from $3.6 million in the prior year[14] - Strong free cash flow enabled a $24.7 million sequential reduction of debt, achieving a leverage target of 3.0x[6] - Total assets as of December 28, 2024, were $668.5 million, with total debt of $265.2 million[14] - Cash and cash equivalents increased to $1.6 million as of December 28, 2024, from $306,000 as of December 30, 2023[23] - Total current liabilities increased to $169.4 million as of December 28, 2024, from $158.2 million as of December 30, 2023[23] Operational Highlights - The company has undergone significant capital expansion, including the construction of a new plant-based beverage facility in Midlothian, Texas[27] - Start-up costs for the year ended December 28, 2024, totaled $19,149 million, primarily related to production scale-up at the plant-based beverage facility in Texas[35] - Wastewater haul-off charges for the year ended December 28, 2024, amounted to $4,361 million due to volume constraints at the treatment system[39] - Product withdrawal costs for the year ended December 28, 2024, were $2,145 million, reflecting direct costs related to the withdrawal of specific batches of products[38] Expenses and Other Financial Metrics - Interest expense, net, for the year ended December 28, 2024, was $24,908 million, down from $26,909 million for the year ended December 30, 2023[34] - Depreciation and amortization for the year ended December 28, 2024, was $36,497 million, compared to $31,039 million for the year ended December 30, 2023[34] - Stock-based compensation for the year ended December 28, 2024, was $11,190 million, a decrease from $12,432 million for the year ended December 30, 2023[34] - The company recorded a gain on the sale of the smoothie bowls product line amounting to $1,800 million for the year ended December 28, 2024[34]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Stock Performance - SunOpta (STKL) has shown a solid price increase of 17.7% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 16.7% over the last four weeks, suggesting that the upward trend is still intact [5]. - STKL is currently trading at 91.3% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - STKL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with strong fundamentals that can maintain their upward trends [3]. - In addition to STKL, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].