Plant-based food and beverage company SunOpta (NASDAQ:STKL) will report earnings tomorrow after the market closes. Here’s what to watch.
SunOpta met analyst expectations last quarter, with revenue of $193.9 million, up 8.9% year over year. It was a mixed quarter for the company, with EPS significantly beating analyst expectations but gross margins significantly missing analyst expectations.
For the quarter, analysts expect SunOpta to report revenue of $194.5 million, up 6.4% year over year, down from 18% growth in the same period last year. Adjusted EPS is expected to be $0.02.
Over the past 30 days, analysts following the company have generally reiterated their estimates, indicating that they expect the business to remain profitable. SunOpta’s revenue has missed Wall Street’s expectations three times in the past two years.
Looking at SunOpta’s peers in the shelf-stable foods space, some companies have already reported first-quarter results, which gives us some ideas for what to expect. Lamb Weston’s revenue grew 4.3% year over year, beating analyst expectations by 2.4%. Simply Good Foods’ revenue grew 15.2%, beating estimates by 1.6%. Lamb Weston’s stock price rose 9.1% after the results were released, and Simply Good Foods’ stock price also rose 9.2%.
Investors are optimistic about the shelf-life food sector, with the average stock price rising 2.1% in the past month. SunOpta’s stock price has risen 15.9% in the same period, and it is about to report profitability, with an average analyst target price of $9.83 (current share price is $4.60).
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