Simply Good Foods (SMPL) Surpasses Q3 Earnings Estimates

Core Insights - Simply Good Foods reported an earnings surprise of 4.17% for the recent quarter, with actual earnings of $0.40 per share compared to an expected $0.37 per share, marking an 8.11% surprise from the previous quarter [1] - The company posted revenues of $334.76 million for the quarter ended May 2024, which was 0.96% below the Zacks Consensus Estimate, but an increase from $324.79 million year-over-year [2] - Simply Good Foods shares have declined approximately 8.7% year-to-date, contrasting with the S&P 500's gain of 14.9% [3] Earnings Performance - The company achieved quarterly earnings of $0.50 per share, surpassing the Zacks Consensus Estimate of $0.48 per share, and up from $0.44 per share a year ago [8] - Over the last four quarters, Simply Good Foods has exceeded consensus EPS estimates four times [9] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $355.31 million, and for the current fiscal year, it is $1.82 on revenues of $1.31 billion [5] - The estimate revisions trend for Simply Good Foods is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [12] Industry Context - The Food - Confectionery industry, to which Simply Good Foods belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment [13] - Another company in the same industry, Hershey, is expected to report quarterly earnings of $1.47 per share, reflecting a year-over-year decline of 26.9% [14]