The Simply Good Foods Co (NASDAQ:SMPL), the maker of Atkins and Simply Protein products, saw net sales jump in its fiscal first-quarter results, but still fell short of Wall Street estimates.
The nutrition-focused food company reported earnings of $0.18 per share, up from $0.14 per share in the previous first quarter, but just short of consensus estimates of $0.19 per share.
Shares of the Denver-based company were up slightly to $18.92 by Wednesday’s closing bell and had not yet begun trading Thursday morning.
Quarterly revenue totaled $120.9 million, a 13.5% increase compared with $106.5 million a year ago, but missing average estimates of $122.6 million.
“Our business continues to be driven by strong base velocity gains of our core products,” said CEO Joseph Scalzo in the company’s press release.
We maintained our retail momentum with U.S. retail takeaway for the thirteen weeks ended November 24, 2018, up 23.5%,” he added.
Looking ahead, the company expects its full-year net sales growth to increase between 4% to 6% compared with its previous estimate that saw net sales growth just slightly surpassing its long-term target.
While the company said it has been making progress with its manufacturing partners, supply issues may continue, so it will reduce its promotional activity to “temper demand.”
Contact Lenore Fedow at [email protected]