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Mama's Creations, Inc. (MAMA) Up 36.1% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Mama's Creations, Inc. (MAMA - Free Report) . Shares have added about 36.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Mama's Creations, Inc. due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Mama's Creations, Inc. before we dive into how investors and analysts have reacted as of late.

Mama's Creations Q1 Earnings Beat Estimates, Sales Increase Y/Y

Mama's Creations reported first-quarter fiscal 2027 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate and increased year over year.

MAMA’s Quarterly Performance: Key Metrics and Insights

Mama’s Creations posted quarterly earnings of five cents per share, which beat the Zacks Consensus Estimate of three cents. The metric increased 67% from the prior-year period.

The company reported total revenues of $52.8 million, which beat the Zacks Consensus Estimate of $52 million. The metric rose 49.7% year over year. This growth was driven by expanded distribution and item penetration across both new and existing customers, the successful introduction of new branded products with major retailers, the contribution from the Bay Shore acquisition and continued strength at Costco. These results were achieved despite lapping a nearly $10 million digital Costco MVM in the prior-year quarter and with significantly lower trade investment.

Gross profit increased 35.3% to $12.4 million from $9.2 million in the year-ago quarter. The gross margin decreased 250 basis points (bps) to 23.6% compared with 26.1% in the first quarter of fiscal 2026. The margin was impacted by labor and raw material inefficiencies associated with the ramp-up of new packaging technologies and protein form factors supporting the launch of more than a dozen new products with major retailers, as well as ongoing integration activities at the Bay Shore facility.

Operating expenses were $9.8 million, up from $7.6 million in the year-ago quarter. As a percentage of sales, operating expenses decreased 310 bps to 18.5% in the first quarter of fiscal 2027. 

Adjusted EBITDA totaled $4.9 million in the first quarter of fiscal 2027. The figure increased 71.2% from $2.8 million in the prior-year quarter.

MAMA’s Financial Snapshot

Mama’s Creations ended the quarter with cash and cash equivalents of $24.4 million and total shareholders’ equity of $55.4 million. As of April 30, 2026, total debt was $5.1 million. For the three months ended April 30, 2026, the net cash flow provided by operations was $5 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -16.67% due to these changes.

VGM Scores

Currently, Mama's Creations, Inc. has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Mama's Creations, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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