Simply Good Foods beats Q3 adjusted EPS estimates

The Simply Good Foods

10/07/2025 12:13

Overview

Simply Good Foods fiscal Q3 revenue just misses analyst expectations, per LSEG data

Adjusted EPS for fiscal Q3 beats consensus, indicating strong operational performance, per LSEG data

OWYN acquisition contributed significantly to sales growth, organic growth driven by Quest

Outlook

Simply Good Foods expects FY 2025 net sales to increase 8.5% to 9.5%.

Company anticipates FY 2025 adjusted EBITDA growth of 4% to 5%.

OWYN net sales projected at $145 mln for FY 2025.

Inflation and tariffs expected to impact gross margin by 200 basis points.

Result Drivers

OWYN ACQUISITION - Contributed $33.6 million to net sales growth, significantly boosting overall revenue

ORGANIC GROWTH - Driven by Quest brand, organic net sales grew 3.8%, despite a decline in Atkins sales

GROSS MARGIN DECLINE - Decreased by 350 basis points due to inflationary pressures and OWYN integration

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$381 mln
$381.70 mln (11 Analysts)
Q3 Adjusted EPS
Beats
$0.51
$0.5 (9 Analysts)
Q3 EPS
$0.4
Q3 Net Income
$41.10 mln
Q3 Gross Margin
36.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "hold."

Wall Street's median 12-month price target for Simply Good Foods Co is $38.00, about 14.9% above its July 9 closing price of $32.34

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX2ZTGTV

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)