Simply Good Foods (NASDAQ:SMPL) Shares Gap Up After Strong Earnings

Key Points

• Simply Good Foods shares gapped up after the company reported better-than-expected quarterly results, opening at $15.03 versus the prior close of $12.84 before settling lower later in the session.
• The company posted EPS of $0.42, beating the $0.35 consensus estimate, and revenue of $356.98 million, above expectations of $332.99 million.
• Despite the earnings beat, sales still fell 6.3% year over year, and management’s outlook remains cautious, with full-year sales expected to decline and gross margin pressure still a concern.

Shares of The Simply Good Foods Company (NASDAQ:SMPL - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $12.84, but opened at $15.03. Simply Good Foods shares last traded at $12.9690, with a volume of 1,258,498 shares trading hands.

The financial services provider reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.07. The business had revenue of $356.98 million during the quarter, compared to analysts' expectations of $332.99 million. Simply Good Foods had a positive return on equity of 9.72% and a negative net margin of 7.46%.Simply Good Foods's quarterly revenue was down 6.3% on a year-over-year basis. During the same quarter last year, the company posted $0.51 earnings per share.

Simply Good Foods News Roundup

Here are the key news stories impacting Simply Good Foods this week:

• Positive Sentiment: SMPL posted adjusted EPS of $0.42, ahead of the $0.35 consensus, and revenue of $357.0 million versus $333.0 million expected, which supports the shares. Article title
• Positive Sentiment: The company raised fiscal 2026 revenue guidance to about $1.345 billion-$1.355 billion, slightly above the market’s prior expectations, signaling management sees some improvement ahead. Article title
• Neutral Sentiment: Simply Good Foods said it is making initial progress on turnaround priorities, with cost controls and buybacks helping near-term sentiment, though the long-term strategy still needs proof. Article title
• Negative Sentiment: Despite the beat, net sales fell 6.3% year over year and adjusted EBITDA dropped sharply, underscoring ongoing operating pressure. Article title
• Negative Sentiment: Management’s outlook calls for full-year sales to decline roughly 7% to 6% and gross margin to contract, while analysts are also flagging brand relevance and distribution issues for Atkins, OWYN and Quest. Article title
• Negative Sentiment: Coverage has also highlighted category headwinds, including the impact of GLP-1 adoption on demand, which could keep investors cautious despite the earnings beat. Article title

Analysts Set New Price Targets

SMPL has been the subject of several research analyst reports. BTIG Research assumed coverage on Simply Good Foods in a research note on Monday, April 13th. They set a "neutral" rating for the company. Sanford C. Bernstein cut Simply Good Foods from an "outperform" rating to a "market perform" rating and dropped their price target for the company from $17.00 to $12.00 in a research note on Wednesday, June 3rd. Stephens reaffirmed an "equal weight" rating and set a $14.00 price target (down from $24.00) on shares of Simply Good Foods in a report on Friday, April 10th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Simply Good Foods in a research report on Thursday, June 18th. Finally, Mizuho set a $19.00 price objective on shares of Simply Good Foods in a report on Monday, May 4th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Simply Good Foods currently has an average rating of "Hold" and a consensus price target of $17.30.

Insider Transactions at Simply Good Foods

In other Simply Good Foods news, Director Clayton C. Daley, Jr. purchased 10,000 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was bought at an average cost of $11.78 per share, for a total transaction of $117,800.00. Following the completion of the transaction, the director owned 111,743 shares in the company, valued at approximately $1,316,332.54. This represents a 9.83% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director James M. Kilts purchased 80,000 shares of the business's stock in a transaction that occurred on Thursday, April 23rd. The stock was bought at an average price of $12.39 per share, with a total value of $991,200.00. Following the completion of the purchase, the director owned 172,854 shares of the company's stock, valued at $2,141,661.06. This trade represents a 86.16% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 8.76% of the company's stock.

Hedge Funds Weigh In On Simply Good Foods

A number of hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC lifted its position in shares of Simply Good Foods by 125.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 967 shares of the financial services provider's stock valued at $31,000 after acquiring an additional 538 shares during the period. Leonteq Securities AG increased its position in shares of Simply Good Foods by 96.2% in the first quarter. Leonteq Securities AG now owns 2,309 shares of the financial services provider's stock worth $33,000 after purchasing an additional 1,132 shares during the period. Hantz Financial Services Inc. increased its position in shares of Simply Good Foods by 82.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,787 shares of the financial services provider's stock worth $36,000 after purchasing an additional 807 shares during the period. Johnson Financial Group Inc. acquired a new position in Simply Good Foods in the third quarter valued at about $36,000. Finally, Parallel Advisors LLC raised its stake in Simply Good Foods by 167.4% in the fourth quarter. Parallel Advisors LLC now owns 2,126 shares of the financial services provider's stock valued at $43,000 after purchasing an additional 1,331 shares in the last quarter. Institutional investors own 88.45% of the company's stock.

Simply Good Foods Price Performance

The firm has a market cap of $1.17 billion, a P/E ratio of -10.95 and a beta of 0.13. The company has a debt-to-equity ratio of 0.27, a current ratio of 5.06 and a quick ratio of 2.87. The company's 50-day moving average is $12.31 and its two-hundred day moving average is $15.11.

Simply Good Foods Company Profile

Simply Good Foods Co NASDAQ: SMPL is a North American consumer packaged foods company specializing in better-for-you nutrition products. The company’s portfolio centers on two well-established brands, Atkins and Quest, which offer a range of low-carbohydrate, high-protein bars, powders, shakes, and snacks. Simply Good Foods aims to support consumers’ health and wellness goals by delivering convenient, nutrient-dense options without added sugars or artificial sweeteners.

Under the Atkins brand, the company produces meal replacements, snack bars, and ready-to-drink shakes designed for low-carb dieters.

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