J & J Snack Foods (NASDAQ:JJSF) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

J & J Snack Foods (NASDAQ:JJSF) posted its quarterly earnings data on Wednesday. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.01, FiscalAI reports. J & J Snack Foods had a net margin of 3.92% and a return on equity of 8.79%. The firm had revenue of $344.82 million during the quarter, compared to analysts’ expectations of $349.67 million. During the same quarter in the previous year, the company posted $0.35 EPS. J & J Snack Foods’s revenue was down 3.2% on a year-over-year basis.

Here are the key takeaways from J & J Snack Foods’ conference call:

• Adjusted EBITDA rose 9.5% year?over?year to $28.7 million and adjusted EPS increased 14.3% to $0.40, achieved despite a 3.2% sales decline to $344.8 million.
• Management says Project Apollo and plant consolidations are driving gross margin expansion and they expect at least $20 million of annualized savings, with remaining administrative and distribution savings slated to ramp in Q3–Q4.
• Top?line softness remains a concern: food service sales fell 5% (largely from planned bakery SKU rationalization and a large customer’s inventory drawdown) and retail sales declined 4.1% due to higher slotting fees and trade investments.
• Rising fuel costs create a clear headwind—management estimates an approximate $3.5 million distribution cost exposure in the second half if fuel stays at current levels and noted fuel pressure can dampen convenience?store and food?service demand.
• Balance sheet and capital returns remain strong: $22 million of share repurchases in the quarter (about $95 million returned in H1 including dividends), roughly $31 million cash net of debt and $181 million of revolver capacity.

J & J Snack Foods Stock Down 7.0%

JJSF stock traded down $5.93 during trading on Wednesday, hitting $78.66. The company had a trading volume of 453,409 shares, compared to its average volume of 237,329. The firm has a 50-day moving average price of $81.89 and a 200-day moving average price of $87.11. J & J Snack Foods has a 12 month low of $73.75 and a 12 month high of $129.24. The stock has a market cap of $1.50 billion, a price-to-earnings ratio of 25.05 and a beta of 0.43.

J & J Snack Foods Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, April 7th. Investors of record on Tuesday, March 17th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 4.1%. The ex-dividend date was Tuesday, March 17th. J & J Snack Foods’s payout ratio is 101.91%.

J & J Snack Foods declared that its board has authorized a stock repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to buy up to 2.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Zacks Research cut shares of J & J Snack Foods from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. Benchmark restated a “buy” rating on shares of J & J Snack Foods in a research report on Tuesday, January 20th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of J & J Snack Foods in a research report on Friday, March 27th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, J & J Snack Foods presently has an average rating of “Hold” and an average price target of $130.00.

Institutional Trading of J & J Snack Foods

Several institutional investors and hedge funds have recently made changes to their positions in JJSF. Goldman Sachs Group Inc. raised its position in shares of J & J Snack Foods by 295.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 171,718 shares of the company’s stock valued at $15,518,000 after acquiring an additional 128,301 shares during the last quarter. Two Sigma Investments LP raised its position in shares of J & J Snack Foods by 962.0% during the 3rd quarter. Two Sigma Investments LP now owns 107,202 shares of the company’s stock valued at $10,301,000 after acquiring an additional 97,108 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of J & J Snack Foods by 3,379.2% during the 4th quarter. Russell Investments Group Ltd. now owns 87,016 shares of the company’s stock valued at $7,864,000 after acquiring an additional 84,515 shares during the last quarter. Qube Research & Technologies Ltd bought a new stake in shares of J & J Snack Foods during the 3rd quarter valued at $7,045,000. Finally, Jane Street Group LLC raised its position in shares of J & J Snack Foods by 137.0% during the 4th quarter. Jane Street Group LLC now owns 126,796 shares of the company’s stock valued at $11,459,000 after acquiring an additional 73,296 shares during the last quarter. Institutional investors own 76.04% of the company’s stock.

J & J Snack Foods Company Profile

J & J Snack Foods (NASDAQ: JJSF) is a U.S.-based manufacturer and distributor of branded snack foods and frozen beverages. Headquartered in Pennsauken, New Jersey, the company develops, produces and markets a broad array of proprietary and licensed products for retail, concession and foodservice customers. Its offerings span soft pretzels, frozen novelties, real Italian ice, churros and packaged beverages under well-known names such as ICEE, SuperPretzel, Luigi’s and ChurroMan.

Founded in 1971 by Gerald B.