Simply Good Food shares tumble on fiscal second quarter revenue shortfall

The Simply Good Foods Company (NASDAQ:SMPL) shares fell astir 19% aft it reported mixed results for the fiscal 2nd quarter, with gross falling abbreviated of Wall Street expectations.

The institution reported nett income of $326.0 million, missing analysts’ projections of $359.7 million.

Adjusted net per stock (EPS) came successful astatine $0.45, up of estimates of $0.41.

The 4th included a nett nonaccomplishment of $159.7 million, compared with nett income of $36.7 cardinal successful the aforesaid play past year.

Gross nett declined, weighed down by operational pressures, and the results were further impacted by a important $184 cardinal non-cash impairment loss.

Adjusted EBITDA totaled $55.5 million, beneath the projected $68 million.

The company, a starring subordinate successful the nutritional snacking category, cited ongoing proviso concatenation challenges and higher input costs arsenic cardinal factors influencing the quarter’s results.

Simple Good Foods CEO Joe Scalzo said helium wanted to marque it “quite clear” the institution is not satisfied with its existent performance.

"Our caller results person not met our expectations, and we person taken contiguous and cardinal actions to turnaround some our fiscal show and our in-market performance,” Scalzo said.

“The semipermanent fundamentals of our category, our portfolio and our institution capabilities are compelling, but successful the near-term our enactment indispensable absorption connected 3 priorities, which are strengthening our concern exemplary economics by improving our outgo operation and margins, ensuring consistency successful our strategical choices driving organizational clarity and efficiency, and rebuilding marque concern down superior selling execution to thrust household penetration."

Looking ahead, Simply Good Foods updated its full-year 2026 guidance, projecting nett income betwixt $1.31 cardinal and $1.35 billion, representing a 7% to 10% diminution year-over-year.

Gross margins are expected to declaration by 300 to 350 ground points, portion adjusted EBITDA is forecasted betwixt $217 cardinal and $225 million, down 19% to 22% from the anterior year.