Simply Good Foods Shares Gain On Q4 Earnings Beat - Simply Good Foods (NASDAQ:SMPL)

Simply Good Foods Co SMPL reported fourth-quarter FY21 sales growth of 16.9% year-on-year, to $259.85 million, beating the analyst consensus of $255.42 million.
"Fourth quarter fiscal 2021 net sales growth was driven by increasing household penetration, improving shopper trips and greater consumer mobility versus the year ago period," said CEO Joseph E. Scalzo.
Gross profit rose 18.6% Y/Y to $104.5 million, with the gross margin expanding 60 basis points Y/Y to 40.2%.
Operating expenses were $63.6 million, up 0.6% Y/Y. The operating margin was 15.7%.
Adjusted EBITDA increased 30.9% Y/Y to $48.5 million.
Net income was $18.2 million versus a net loss of $(39.3) million last year. Adjusted EPS of $0.29 topped the consensus of $0.25.
The company ended Q4 with cash and equivalents totaling $75.3 million.
Outlook: Simply Good Foods sees FY22 net sales growth of 8% - 10% and a modest gross margin contraction.
The company expects Adjusted EBITDA to increase slightly greater than the net sales growth rate and Adjusted EPS to grow greater than the Adjusted EBITDA growth rate.
Price Action: SMPL shares are trading higher by 5.36% at $36.15 on the last check Friday.