Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Schiff Nutrition International Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Nutritional-supplement company Schiff Nutrition International (NYSE: SHF  ) is going to "pump you up" following the release of its first-quarter earnings results. Shares rose as much as 12% earlier in the trading session.

So what: It was a pretty phenomenal quarter for Schiff Nutrition, which reported 46% net sales growth, an 81% rise in year-over-year EBITDA, and gross-margin expansion of 240 basis points. Part of the growth was driven by its acquisition of Airborne, but the remainder came from strong branded growth. Schiff also handily raised its guidance for the remainder of fiscal 2013. Previously, the company had forecasted net sales growth of 40% to 43% and an operating margin of 12.5% to 14%. With its new forecast, Schiff projected net sales growth of 43% to 46% and an operating margin of 14.5% to 16%.

Now what: There's a lot to like about these results from Schiff, including its upped guidance and growing margins. If there's anything that would cause me to back off the stock, it's the valuation. Growth is getting a boost from the Airborne acquisition this year, but it will taper to an projected 9.5% next year, according to Wall Street estimates. That is, perhaps, a bit pricey for a company trading at 23 times forward earnings. If anything, Schiff is definitely a company worth adding to My Watchlist.

Craving more input? Start by adding Schiff Nutrition International to your free and personalized Watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2021884, ~/Articles/ArticleHandler.aspx, 10/26/2016 12:06:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
SHF.DL $0.00 Down +0.00 +0.00%
Schiff Nutrition I… CAPS Rating: **