Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at SunOpta (NASDAQ:STKL) and its peers.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 20 shelf-stable food stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.9%.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.
SunOpta (NASDAQ:STKL)
Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.
SunOpta reported revenues of $205.4 million, up 16.6% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
"We delivered outstanding revenue growth in the third quarter and affirmed the strength of our competitive position, the diversity of our revenue streams and the robust demand across our portfolio," said Brian Kocher, Chief Executive Officer of SunOpta.
SunOpta scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 26.5% since reporting and currently trades at $3.87.
Is now the time to buy SunOpta? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: J&J Snack Foods (NASDAQ:JJSF)
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
J&J Snack Foods reported revenues of $410.2 million, down 3.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA and EPS estimates.
The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $89.84.
Is now the time to buy J&J Snack Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: TreeHouse Foods (NYSE:THS)
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE:THS) produces a wide range of private-label foods for grocery and food service customers.
TreeHouse Foods reported revenues of $841.9 million, down 1.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Interestingly, the stock is up 24.3% since the results and currently trades at $23.69.
Read our full analysis of TreeHouse Foods’s results here.
Mondelez (NASDAQ:MDLZ)
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Mondelez reported revenues of $9.74 billion, up 5.9% year on year. This print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
The stock is down 9.3% since reporting and currently trades at $54.73.
Read our full, actionable report on Mondelez here, it’s free for active Edge members.
B&G Foods (NYSE:BGS)
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
B&G Foods reported revenues of $439.3 million, down 4.7% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 15% since reporting and currently trades at $4.56.
Read our full, actionable report on B&G Foods here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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