Simply Good Foods (NASDAQ: SMPL) reported Q2 EPS of $0.25, $0.02 better than the analyst estimate of $0.23. Revenue for the quarter came in at $230.6 million versus the consensus estimate of $230.03 million.

GUIDANCE:

Simply Good Foods sees FY2021 EPS of $1.07-$1.11, versus the consensus of $1.03.

“Our business continues to perform well despite the significant effects over the last year due to reduced consumer mobility related to COVID-19. In the second half of the year, we anticipate overall marketplace trends will improve due to easier year ago comparisons, improving shopping trips in measured channels and an increase in consumer mobility. We have a portfolio of brands aligned with consumer mega-trends of both health and wellness, convenience and on-the-go nutrition. Over the remainder of the year we have solid plans in place for both the Atkins and Quest brands, including, innovation, advertising and in-store merchandising and display that we anticipate will drive solid sales and earnings growth.”

Assuming consumer mobility in the United States remains at current levels and broad lockdowns are not reimposed, the Company anticipates full year fiscal 2021 net sales of $930-940 million and Adjusted EBITDA(2,5) of $180-185 million. The divestiture of SimplyProtein® and the European business exit is about a combined 1.5% headwind to full year fiscal 2021 net sales growth versus a previous estimate of 2%. Given year-to-date gross margin performance, and reinstated trade promotion expense related to in-store merchandising and display in the second half of the year, the Company expects full year gross margin, apart from the inventory purchase accounting step-up in the year ago period, to be slightly lower compared to fiscal 2020. The Company’s previous outlook indicated full year gross margin would be about the same as fiscal 2020. Additionally, due to solid cost control and acquisition synergies, the Company continues to anticipate Adjusted EBITDA margin expansion in fiscal 2021.

The Company anticipates 2021 Adjusted Diluted EPS(3,5) to be in the range of $1.07 to $1.11 versus $0.91 in 2020.

For earnings history and earnings-related data on Simply Good Foods (SMPL) click here.