Smart Balance
The 10-second takeaway
For the quarter ended June 30 (Q2), Smart Balance missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Revenue details
Smart Balance notched revenue of $76.0 million. The nine analysts polled by S&P Capital IQ foresaw sales of $77.4 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $59.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.05. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.01 for Q2 were 83% lower than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 42.1%, 560 basis points worse than the prior-year quarter. Operating margin was 7.9%, 470 basis points worse than the prior-year quarter. Net margin was 0.6%, 500 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $85.0 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $336.0 million. The average EPS estimate is $0.27.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 266 members out of 286 rating the stock outperform, and 20 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Smart Balance a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smart Balance is outperform, with an average price target of $8.39.
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