What To Expect From SunOpta's (STKL) Q1 Earnings

Adam Hejl /
2024/05/07 3:06 am EDT

Plant-based food and beverage company SunOpta (NASDAQGS:STKL) will be reporting earnings tomorrow after market hours. Here's what investors should know.

SunOpta beat analysts' revenue expectations by 5.5% last quarter, reporting revenues of $181.6 million, up 13.7% year on year. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

Is SunOpta a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting SunOpta's revenue to decline 24.6% year on year to $168.9 million, a further deceleration from the 6.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

SunOpta Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SunOpta has missed Wall Street's revenue estimates five times over the last two years.

Looking at SunOpta's peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mondelez delivered year-on-year revenue growth of 3%, beating analysts' expectations by 1.5%, and BellRing Brands reported revenues up 28.3%, topping estimates by 5.9%. Mondelez traded down 1.8% following the results.

Read our full analysis of Mondelez's results here and BellRing Brands's results here.

Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. SunOpta is down 14.5% during the same time and is heading into earnings with an average analyst price target of $9.6 (compared to the current share price of $5.66).

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