Stryve Foods, Inc. (SNAX Quick QuoteSNAX - Free Report) came out with its second-quarter 2023 preliminary results. The company continues to make progress on its transformation and is impressed with the consumer response to the new strategic brand positioning.

In addition, the premium air-dried meat snack company also announced a reverse stock split.   The company authorized a reverse stock split of its Class A and Class V outstanding shares at a ratio of 1-for-15, effective Jul 14, 2023.

Let’s delve deeper.

Preliminary Q2 Results

Stryve Foods highlighted that preliminary projections for its net revenues will be in the range of $5.8-$6 million for the second quarter of 2023, reflecting sequential growth of 26.1-30.4% from the first quarter.

Management is impressed with the achievements of its business fundamentals, with a higher focus on the core portfolio and overall executional advancements. The company highlighted that the recent SPINs data reflects a major year-over-year improvement across measured channels with dollar sales increasing 38%. Its total distribution points grew 19%, and the price mix improved 12.5%.  Stryve Foods’ brand strength, retail partnerships and expanded consumer base are yielding well.

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During the second quarter, the company envisions reporting higher gross margins on a year-over-year basis. The upside can be attributed to favorable pricing, product mix and productivity. That said, the gross margin is likely to decline sequentially. Management anticipates adjusted EBITDA loss in the range of $2.4 million to $2.7 million, reflecting improvement on a year-over-year and sequential basis. Furthermore, Stryve Foods projects net working capital (excluding cash and debt) between $5.8 million and $6.2 million, with a cash balance similar to the first quarter’s level.

All said, a rationalized cost structure, rising sales and increased productivity are creating operating leverage and aiding Stryve Foods’ profits.

The Zacks Rank #2 (Buy) company has increased 10.3% in the past three months against the industry’s 1.6% decline.

Other Solid Staple Bets

Here we have highlighted three other top-ranked stocks, namely TreeHouse Foods, Inc. (THS Quick QuoteTHS - Free Report) , Lamb Weston Holdings (LW Quick QuoteLW - Free Report) and Celsius Holdings (CELH Quick QuoteCELH - Free Report) .

TreeHouse Foods, a manufacturer of packaged foods and beverages, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

THS has a trailing four-quarter earnings surprise of 49.3%, on average. The Zacks Consensus Estimate for TreeHouse Foods’ current financial-year sales suggests a decline of 12.4%, from the year-ago reported numbers.

Lamb Weston, a leading supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers worldwide, currently carries a Zacks Rank of 2. LW has a trailing four-quarter earnings surprise of 47.6%, on average.

The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 29.6% and 117.3%, respectively, from the year-ago reported numbers. The expected earnings per share growth rate for three to five years is 42.7%.

Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank of 2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.

The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.