SunOpta
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.
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