BellRing Brands (NYSE:BRBR) Issues Earnings Results, Misses Expectations By $0.07 EPS

BellRing Brands (NYSE:BRBR) announced its quarterly earnings results on Tuesday. The company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.07), FiscalAI reports. BellRing Brands had a negative return on equity of 44.06% and a net margin of 6.78%.The business had revenue of $570.40 million for the quarter, compared to analysts’ expectations of $548.72 million. During the same period last year, the company posted $0.55 earnings per share. The firm’s revenue for the quarter was up 4.2% on a year-over-year basis.

Here are the key takeaways from BellRing Brands’ conference call:

• Positive Sentiment: Third-quarter net sales rose 4%, with Premier Protein and Dymatize both exceeding expectations; Premier shake consumption increased 6% in dollars and Dymatize sales grew 27%.
• Negative Sentiment: Profitability was pressured by protein and freight inflation, tariffs, and excess bottle inventory. Adjusted gross margin fell to 27.7% from 35.1% a year ago, while fourth-quarter adjusted EBITDA margin is expected to be approximately 10%.
• Positive Sentiment: Management expects fiscal 2027 margins to improve through a double-digit Premier shake price increase, additional Dymatize pricing, $10 million–$12 million in annualized operating expense savings, and stronger supply-chain execution.
• Positive Sentiment: Growth initiatives include distribution gains in food, drug and mass retail and e-commerce, targeted convenience-store expansion, and new products such as the 42-gram Premier Ultimate Shake and Premier Protein Sparkling Soda.
• Negative Sentiment: The company expects net leverage to rise from 3.2x at the end of the third quarter to approximately 4x at fiscal year-end, partly due to a sizable legal settlement payment.

BellRing Brands Stock Down 4.5%

Shares of BellRing Brands stock traded down $0.59 during trading hours on Tuesday, hitting $12.36. 4,586,071 shares of the company’s stock traded hands, compared to its average volume of 4,666,702. BellRing Brands has a twelve month low of $7.82 and a twelve month high of $44.89. The company has a market cap of $1.44 billion, a PE ratio of 9.57, a PEG ratio of 6.02 and a beta of 0.45. The stock has a 50 day simple moving average of $11.16 and a 200-day simple moving average of $15.09.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. JPMorgan Chase & Co. boosted their price objective on BellRing Brands from $13.00 to $17.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 28th. Weiss Ratings reiterated a “sell (d)” rating on shares of BellRing Brands in a research note on Friday, July 10th. Barclays raised their target price on BellRing Brands from $13.00 to $14.00 and gave the company an “overweight” rating in a report on Tuesday, July 21st. Stifel Nicolaus upped their price target on BellRing Brands from $14.00 to $15.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Finally, Bank of America lowered their price objective on shares of BellRing Brands from $22.00 to $19.00 and set a “neutral” rating for the company in a research report on Friday, April 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $20.97.

Insider Activity at BellRing Brands

In other BellRing Brands news, Director David Isaiah Finkelstein purchased 4,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average price of $9.23 per share, for a total transaction of $36,920.00. Following the completion of the purchase, the director owned 13,326 shares in the company, valued at $122,998.98. The trade was a 42.89% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On BellRing Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Danske Bank A S acquired a new stake in shares of BellRing Brands during the third quarter worth approximately $29,000. IFP Advisors Inc increased its position in shares of BellRing Brands by 124.3% in the 3rd quarter. IFP Advisors Inc now owns 1,034 shares of the company’s stock worth $38,000 after purchasing an additional 573 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of BellRing Brands by 333.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,856 shares of the company’s stock valued at $50,000 after purchasing an additional 1,428 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of BellRing Brands by 591.5% during the fourth quarter. Parallel Advisors LLC now owns 2,123 shares of the company’s stock worth $57,000 after purchasing an additional 1,816 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of BellRing Brands by 42.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,248 shares of the company’s stock worth $72,000 after purchasing an additional 373 shares during the last quarter. 94.97% of the stock is currently owned by hedge funds and other institutional investors.

About BellRing Brands

BellRing Brands, Inc is a consumer packaged goods company specializing in high?protein, better?for?you nutrition products. Formed in March 2020 as a spin?off from Post Holdings, the company focuses on delivering convenient protein solutions to health?conscious consumers through a portfolio of well?known and emerging brands.

The company’s product offerings include ready?to?drink protein shakes, protein powders, nutrition bars and other performance nutrition items. BellRing Brands’ flagship brands include Premier Protein, a line of shakes and bars designed for everyday protein supplementation, as well as Dymatize and PowerBar, which cater to athletes and active individuals seeking advanced sports nutrition formulas.

BellRing Brands markets its products primarily across North America, leveraging relationships with major retailers, wholesale clubs and e-commerce platforms to reach consumers in the United States and Canada.