The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Smart Balance met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins contracted, operating margins grew, and net margins grew.
Smart Balance booked revenue of $71.7 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $71.6 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $62.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.06. The eight earnings estimates compiled by S&P Capital IQ averaged $0.05 per share on the same basis. GAAP EPS were $0.03 for Q3 versus -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.3%, 140 basis points worse than the prior-year quarter. Operating margin was 7.8%, 290 basis points better than the prior-year quarter. Net margin was 2.0%, 640 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $78.6 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $268.9 million. The average EPS estimate is $0.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 284 members out of 298 rating the stock outperform, and 14 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Smart Balance a green thumbs-up, and three 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 $7.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.