Lamb Weston (LW) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On ...

Core Insights - Nomad Foods (NOMD) is focusing on innovation to recover from a decline in total revenues, organic sales, and volume in Q1 2025, which fell by 3%, 3.6%, and 3.7% respectively [1][9] - The company is particularly enhancing its fish portfolio, which accounts for about one-third of total revenues, by renovating existing products and launching new lines [2][9] - Nomad Foods is targeting new consumption occasions, especially snacking, to reposition frozen fish products, with early success indicated by a 9% year-over-year increase in fish retail sales in Italy during Q1 [3][9] Innovation Strategy - The company plans to increase the percentage of sales from innovation in 2025 while maintaining investment levels despite macroeconomic challenges [4] - Management will monitor the performance of innovation initiatives and apply insights across markets to support volume trends and enhance product relevance over time [4] Industry Context - Other companies in the industry, such as Conagra Brands and Lamb Weston, are also focusing on innovation to drive growth, with Conagra reporting a 6.3% revenue decline in Q3 2025 and Lamb Weston achieving a 9% volume growth despite challenges [5][6][7] Financial Performance - Nomad Foods' shares have decreased by approximately 1.8% over the past month, contrasting with the industry's growth of 2.3% [8] - The company trades at a forward price-to-earnings ratio of 8.04X, significantly lower than the industry average of 15.97X [11] - The Zacks Consensus Estimate indicates a projected year-over-year sales growth of 4.6% and earnings per share growth of 7.3% for the current financial year [12] Sales and Earnings Estimates - Current quarter sales are estimated at $857.70 million, with a year-over-year growth estimate of 5.80% [14] - The earnings per share for the current year is projected at $2.07, reflecting a year-over-year growth estimate of 7.25% [15]

Core Insights - Investors are increasingly focusing on artificial intelligence (AI) as a significant opportunity for growth, similar to past successes with companies like Amazon and Nvidia [1] Group 1: Company Summaries - **The Honest Company**: Specializes in personal and baby care products with clean ingredients, reported $97 million in revenue for Q1 2025, a 13% year-over-year increase, and is positioned for profitable growth [4] - **Stride**: A technology-based learning company with an 18% year-over-year revenue increase to $613 million in Q3 fiscal 2025, and profits of $99 million, with analysts predicting a 14% rise in stock price [6] - **Revolve Group**: An online fashion retailer utilizing AI, reported a 10% year-over-year sales increase and a 5% rise in net income, with mixed analyst opinions on stock price targets [8][9] - **Nomad**: A European frozen foods company with a 6% compound annual growth rate over the past decade, despite a recent sales decrease, all analysts rate it a buy with a target price 40% higher than current levels [10] - **Driven Brands**: Offers automotive services, reported a 7% sales increase in Q1, and plans to open 200 new stores in 2025, with a 30% average price target increase anticipated [11] - **Oddity Tech**: A cosmetics and skincare company using AI, reported a 27% revenue increase in Q1, but is seen as potentially expensive in the short term [12] - **Urban Outfitters**: Experienced an 11% revenue increase in Q1 fiscal 2026, with earnings per share nearly doubling, and all analysts expect further stock price increases [13] - **Shake Shack**: Reported a 10.5% sales increase in Q1 and more than doubled net income, with a positive long-term outlook despite a recent stock price surge [14] - **Academy Sports**: A sporting goods retailer facing short-term pressure but has long-term growth potential through new store openings and digital expansion, with a 20% average price target increase [16] - **Chef's Warehouse**: A specialty foods distributor with a 9% revenue increase in Q1 and earnings per share rising from $0.05 to $0.25, all analysts predict an 8% to 20% stock price increase [17][18]

Core Insights - Anheuser-Busch InBev (AB InBev) announced a $17 million investment in its Houston brewery as part of its Brewing Futures program, which includes a total commitment of $300 million for facility investments across the U.S. by 2025 [1][9] - The investment aims to enhance brewing excellence and improve transportation capabilities, ensuring efficient product delivery throughout Texas, building on over $50 million already invested in the Houston site in the past three years [2][4] - AB InBev's Brewing Futures initiative focuses on creating a sustainable workforce, supporting job creation, and advancing opportunities for veterans in the manufacturing sector [3] Investment and Economic Impact - The Houston brewery has been a key operational hub for nearly 60 years, with AB InBev and its distributor partners investing over $2.3 billion in capital projects in Texas to date [4] - The company employs nearly 1,000 individuals across four facilities in Texas, significantly contributing to the local economy and the American brewing industry [4] - Nationally, AB InBev operates over 100 facilities and employs 65,000 Americans, having invested nearly $2 billion in facility upgrades over the past five years [5] Growth Strategy - AB InBev is experiencing strong revenue momentum driven by consumer demand for its diverse brand portfolio and strategic pricing initiatives [7] - The company is focusing on expanding its premium and super-premium beer offerings, with brands like Corona and Stella Artois performing well internationally [8] - AB InBev is also diversifying into new categories such as ready-to-drink beverages and hard seltzers, while enhancing its digital platforms for better customer engagement [10]

Core Insights - Nomad Foods Limited (NOMD) is facing increasing input cost pressures, particularly in protein categories such as chicken and red meat, due to heightened demand and disruptions related to Asian flu in Europe [1][7] - The company's management indicated that pricing actions are being implemented but will likely lag behind cost inflation in the near term, leading to a revised lower adjusted EBITDA growth guidance for 2025 [2][3] Financial Performance - In Q1 2025, Nomad Foods reported a gross margin increase of 90 basis points year-over-year to 27.8%, but adjusted EBITDA declined by 1.8%, indicating early signs of margin pressure [2][7] - The updated guidance for adjusted EBITDA growth for 2025 has been revised downward to a range of 0% to 2%, from a previous range of 2% to 4% [2] Market Position and Strategy - Nomad Foods has a history of pricing to recover cost increases, but prolonged inflation in protein inputs may challenge consumer elasticity, particularly in value-seeking markets like the UK [3] - The company must balance cost recovery with demand retention while maintaining brand strength to offset margin pressure in the upcoming quarters [3] Peer Comparison - Conagra Brands (CAG) is also facing elevated protein and input costs, resulting in a 389-basis-point adjusted gross margin decline in Q3 fiscal 2025, and is focusing on portfolio restructuring [4] - Lamb Weston reported 9% global volume growth in Q3 fiscal 2025 and is executing over 30 strategic projects, despite a 5% decline in price/mix due to strategic pricing adjustments [5] Valuation Metrics - Nomad Foods shares have decreased approximately 5.5% in the past month, compared to a 1.7% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 7.89X, significantly lower than the industry average of 15.77X [9] Earnings Estimates - The Zacks Consensus Estimate for Nomad Foods' current financial-year sales and earnings per share implies year-over-year growth of 4.6% and 7.3%, respectively [11] - For Q2 2025, the consensus estimate for sales is $892.71 million, reflecting a year-over-year growth estimate of 5.54% [12]

Core Insights - Frozen foods are experiencing rapid growth due to convenience, durability, and healthier options, with Nomad Foods Limited (NOMD) leading the savory frozen food market [1][2] - The company is focused on acquiring a leadership position in the frozen food sector through product launches, market expansion, sustainability efforts, and strategic acquisitions [2][3] Company Strategy - Innovation is central to NOMD's strategy, enhancing its product offerings and market presence through acquisitions like Fortenova Group's Frozen Food Business Group, Findus Switzerland, Goodfella's, and Aunt Bessie's Limited [3][10] - The management highlighted that the frozen food category has outpaced the overall food industry by nearly one percentage point over the last decade, driven by trends in convenience, sustainability, value, and taste [4] Market Position and Competition - NOMD is strategically positioned to leverage evolving market trends and meet consumers' nutritional needs, with major competitors including Conagra Brands, Inc. and Tyson Foods, Inc. [5][6] - Conagra reported net sales of $1.1 billion in its Refrigerated & Frozen segment for the third quarter of fiscal 2025, emphasizing innovation and supply-chain modernization [7] - Tyson Foods' Prepared Foods segment generated $2.4 billion in sales in the second quarter of fiscal 2025, focusing on a broad range of frozen and refrigerated products [8] Financial Performance - NOMD's shares have increased by 5.5% year-to-date, outperforming the industry's decline of 2.2% [9] - The company trades at a forward price-to-earnings ratio of 8.11X, significantly lower than the industry average of 15.98X [11] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 7.3% for 2025 and 8.7% for 2026, although estimates have been revised downward in the past 30 days [12]

Key Takeaways NOMD's Q1 gross margin grew 90 bps to 27.8% despite retailer destocking and modest sales. Product innovation like Fish Bar is boosting category growth and appeal. NOMD is increasing ad spend and upgrading to keep margins strong as input costs begin to rise.Innovation lies at the heart of Nomad Foods Limited’s (NOMD) management strategy, driving long-term growth and competitive advantage. In the first quarter of 2025, despite retailer inventory destocking and modest sales, NOMD grew its gross ...

Core Insights - Healthy cash flow is essential for a company's existence, development, and success, acting as the lifeblood of any business [1] - Companies such as Dave Inc. (DAVE), Nomad Foods Limited (NOMD), Great Lakes Dredge & Dock Corporation (GLDD), and Natural Gas Services Group, Inc. (NGS) are identified as potential investment opportunities due to their rising cash flows [2][9] Cash Flow Importance - Profitability alone does not guarantee a company's survival; uneven cash flow can lead to bankruptcy, making cash flow analysis crucial for prudent investment decisions [3] - In the current economic climate, analyzing a company's cash-generating efficiency is particularly relevant due to global uncertainties and liquidity concerns [4] Cash Flow Dynamics - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow signifies declining liquidity [5] - Continuous growth in cash flow is necessary for future growth, reflecting management's efficiency and reducing reliance on external financing [6] Screening Parameters - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average, indicating a positive trend [7] - Additional criteria include Zacks Rank 1, average broker rating of 1, current price above $5, and a VGM Score of B or better [8] Selected Stocks - DAVE is a neobank and fintech innovator with a 33.8% improvement in the 2025 earnings per share estimate [10] - NOMD, a frozen food manufacturer, has a current-year earnings estimate of $2.07 per share, reflecting a 7.3% year-over-year increase [11] - GLDD, the largest U.S. dredging service provider, has seen a 34.8% upward revision in its 2025 earnings estimate to 93 cents per share [12] - NGS, which manufactures natural gas compressors, has an 18.6% improvement in its 2025 earnings estimate [12]

Summary of Nomad Foods Conference Call Company Overview - **Company**: Nomad Foods - **Industry**: Frozen Food Key Messages - **Category Advantage**: Nomad Foods believes it has a competitive edge in the frozen food category, which has shown strong performance over the last decade, outperforming overall food trends [3][4][19] - **Portfolio Strength**: The company has a diverse portfolio in frozen food, including fish, vegetables, chicken, ice cream, and pizza, with two-thirds of its business focused on protein and vegetables [5][6][21][23] - **Market Share Focus**: Nomad Foods emphasizes the importance of market share, stating that it has maintained an average market share of 46% in its key categories, which represent about 37% of net sales [14][24] Financial Performance - **Sales Growth**: The company has consistently increased sales and EBITDA over the past nine years, with growth rates of 6%, 7%, and 10% in recent years despite market challenges [8][9] - **EBITDA Guidance**: For the current year, Nomad Foods expects EBITDA growth between 2% and 6%, with adjusted EPS projected between €1.82 and €1.89 [66][69] - **Free Cash Flow**: The company has generated over €2 billion in adjusted free cash flow from 2017 to 2024, with expectations of around €850 million in the coming years [69][70] Market Dynamics - **Category Growth**: The frozen food category is projected to grow at 2% in value and 1% in volume, with Nomad Foods stabilizing its market share despite some seasonal fluctuations [61][63][65] - **Competitive Landscape**: The company acknowledges the competitive pressure from private labels but remains focused on innovation and brand strength to maintain its market position [76][80] Innovation and Product Development - **Innovation Strategy**: Nomad Foods aims to increase its innovation rate, targeting 6.5% of its product offerings to be new innovations, leveraging successful products from one market to introduce in others [27][28][34] - **Product Renovation**: The company is committed to improving existing products, with a goal to enhance taste and quality, particularly in categories like pizza and fish fingers [31][33][34] Challenges and Opportunities - **Inflation Impact**: The company faced inflationary pressures, particularly in protein costs, which affected gross margins. However, it has chosen not to reopen negotiations with retailers to adjust pricing immediately [66][67] - **M&A Strategy**: Nomad Foods remains open to M&A opportunities but emphasizes a disciplined approach, focusing on synergies and avoiding high multiples [100][102] Future Outlook - **Long-term Growth Potential**: The company sees significant growth potential in frozen food, particularly in markets like Italy and Germany, where it plans to expand its product offerings [20][36][38] - **Consumer Trends**: Nomad Foods is adapting to changing consumer preferences, including a focus on health and convenience, which aligns with the growing popularity of air fryers and healthier frozen options [18][20][17] Conclusion - Nomad Foods is positioned well within the frozen food industry, leveraging its strong portfolio and market share while focusing on innovation and strategic growth opportunities. The company is navigating current challenges with a clear strategy aimed at long-term success.

June 2025 dbAccess Global Consumer Conference 1 Disclaimer not constitute or form part of, and should not be construed as: (i) an offer, solicitation or invitation to subscribe for, sell or issue, underwrite or otherwise acquire any securities or financial instruments, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to such securities or financial instruments, or ...