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SunOpta Beats on Revenue, Matches Expectations on EPS

By Seth Jayson - Updated Apr 7, 2017 at 11:50AM

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Just the facts, Fool.

SunOpta (Nasdaq: STKL) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), SunOpta beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
SunOpta chalked up revenue of $279.3 million. The six analysts polled by S&P Capital IQ foresaw a top line of $270.0 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $272.4 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 $0.10. The seven earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. GAAP EPS of $0.09 for Q3 were 80% higher than the prior-year quarter's $0.05 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 11.9%, 20 basis points worse than the prior-year quarter. Operating margin was 4.5%, 140 basis points better than the prior-year quarter. Net margin was 2.1%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $257.4 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $0.39.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 220 members out of 320 rating the stock outperform, and 100 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give SunOpta a green thumbs-up, and 52 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SunOpta is buy, with an average price target of $7.84.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

SunOpta Inc. Stock Quote
SunOpta Inc.
STKL
$6.44 (4.21%) $0.26

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