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Although the Zacks Food-Miscellaneous Industry is in the top 28% of over 250 Zacks industries, one noticeable laggard is J&J Snack Foods (JJSF - Free Report) with its stock landing a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
In what it has called a softer consumer environment, the snacks, pastries, and frozen beverage provider is also operating in a very competitive landscape that features competitors such as Mondelez International (MDLZ - Free Report) , Conagra Brands (CAG - Free Report) , Utz Brands (UTZ - Free Report) , and Kellogg (KLG - Free Report) among others.
Q1 Earnings Miss
Causing concern was J&J Snack Foods’ fiscal first quarter earnings of $0.52 a share in February, which widely missed the Zacks Consensus of $0.87 per share by -40%. Quarterly sales of $348.31 million missed estimates by -4% with the company citing declines in consumer traffic and consumption for its much weaker-than-expected results.
Image Source: Zacks Investment Research
Transpiring from the earnings miss, EPS estimates for fiscal 2024 and FY25 have fallen -10% and -8% over the last 60 days respectively. This has started to dull the anticipation of J&J Snack Foods expansive bottom line with annual earnings still forecasted to rise 12% this year and projected to expand another 13% in FY25 to $5.72 per share.
Image Source: Zacks Investment Research
Premium Fears & Recent Performance
While J&J Snack Foods’ EPS growth may still be enticing the downward earnings estimate revisions suggest more short-term volatility ahead. To that point, JJNF has now dropped -13% year to date to noticeably lag the S&P 500’s +10% and the Zacks Food-Miscellaneous Market’s +5%.
Image Source: Zacks Investment Research
Furthermore, with J&J Snack Foods’ stock trailing the performances of many of its direct competitors it’s noteworthy that JJNF trades at a 28.3X forward earnings multiple which is considerably higher than the industry average of 17.6X and the S&P 500’s 22.1X.
Image Source: Zacks Investment Research
Bottom Line
On the surface, J&J Snack Foods' bottom line expansion may be enticing but the trend of declining earnings estimates paints a cautionary tale. This is especially true considering its stock trades at a premium and has underperformed many of its industry peers.
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Bear of the Day: J & J Snack Foods (JJSF)
Although the Zacks Food-Miscellaneous Industry is in the top 28% of over 250 Zacks industries, one noticeable laggard is J&J Snack Foods (JJSF - Free Report) with its stock landing a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
In what it has called a softer consumer environment, the snacks, pastries, and frozen beverage provider is also operating in a very competitive landscape that features competitors such as Mondelez International (MDLZ - Free Report) , Conagra Brands (CAG - Free Report) , Utz Brands (UTZ - Free Report) , and Kellogg (KLG - Free Report) among others.
Q1 Earnings Miss
Causing concern was J&J Snack Foods’ fiscal first quarter earnings of $0.52 a share in February, which widely missed the Zacks Consensus of $0.87 per share by -40%. Quarterly sales of $348.31 million missed estimates by -4% with the company citing declines in consumer traffic and consumption for its much weaker-than-expected results.
Image Source: Zacks Investment Research
Transpiring from the earnings miss, EPS estimates for fiscal 2024 and FY25 have fallen -10% and -8% over the last 60 days respectively. This has started to dull the anticipation of J&J Snack Foods expansive bottom line with annual earnings still forecasted to rise 12% this year and projected to expand another 13% in FY25 to $5.72 per share.
Image Source: Zacks Investment Research
Premium Fears & Recent Performance
While J&J Snack Foods’ EPS growth may still be enticing the downward earnings estimate revisions suggest more short-term volatility ahead. To that point, JJNF has now dropped -13% year to date to noticeably lag the S&P 500’s +10% and the Zacks Food-Miscellaneous Market’s +5%.
Image Source: Zacks Investment Research
Furthermore, with J&J Snack Foods’ stock trailing the performances of many of its direct competitors it’s noteworthy that JJNF trades at a 28.3X forward earnings multiple which is considerably higher than the industry average of 17.6X and the S&P 500’s 22.1X.
Image Source: Zacks Investment Research
Bottom Line
On the surface, J&J Snack Foods' bottom line expansion may be enticing but the trend of declining earnings estimates paints a cautionary tale. This is especially true considering its stock trades at a premium and has underperformed many of its industry peers.