The 10-second takeaway
For the quarter ended March 31 (Q1), Smart Balance met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share stayed the same.
Margins shrank across the board.
Smart Balance logged revenue of $79.3 million. The nine analysts polled by S&P Capital IQ anticipated sales of $78.8 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $59.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.06 were the same as 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 44.2%, 330 basis points worse than the prior-year quarter. Operating margin was 9.8%, 290 basis points worse than the prior-year quarter. Net margin was 4.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $77.6 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $328.4 million. The average EPS estimate is $0.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 285 members out of 298 rating the stock outperform, and 13 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 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 $7.89.
Over the decades, small-cap stocks, like Smart Balance have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Smart Balance to My Watchlist.
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.
More from The Motley Fool
Why Boulder Brands Shares Rolled Ahead Today
Boulder Brands shares bounced on solid guidance Thursday. But how long can the rally last?
Why Boulder Brands Inc. Stock Dropped Like a Rock Today
Is Boulder Brands' plunge meaningful? Or just another movement?
Why Shares of Boulder Brands Inc Tumbled Thursday
Boulder Brands disappoints with its top-line growth forecast.