DA Davidson Lowers Price Target on Schiff Nutrition (WNI), Company Blows Out Q1 Results

DA Davidson is maintaining its Neutral rating on shares of Schiff Nutrition (NYSE: WNI) and is lowering its price target from $12 to $11 following the company's Q1 results.

The company released its Q1 results with EPS of $0.16 and net sales of $58.2 million, well ahead of the firms estimates by $0.04 and 5.3 percent. During the quarter, Branded Supplement sales grew 25 percent and the segment as a whole grew 12.5 percent organically. Private label sales fell 28.3 percent during the quarter.

WNI's upside was largely contributed to the company's gross margin which accounted for 44.9 percent of total sales. Gross margin rose 540 bps year-over-year and the company narrowed its full-year gross margin outlook from 41-44 percent to 42-44 percent.

Operating profits rose 32.2 percent year-over-year to a 13.3 percent margin while selling and marketing expenses also rose to 20.4 percent of sales.

The firm is reaffirming its 2012 and 2013 EPS estimates of $0.50 and $0.60. Revenue for 2012 and 2013 was increased slightly to $237.8 million and $253.8 million.

For more ratings news on Schiff Nutrition click here and for the rating history of Schiff Nutrition click here.

Shares of Schiff Nutrition closed at $9.76 yesterday.

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