Mama’s Creations (NASDAQ:MAMA) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Mama’s Creations (NASDAQ:MAMA) posted its quarterly earnings data on Monday. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.02, FiscalAI reports. The company had revenue of $52.77 million for the quarter, compared to analysts’ expectations of $51.63 million. Mama’s Creations had a net margin of 3.06% and a return on equity of 15.31%. During the same period in the prior year, the business earned $0.03 earnings per share.

Here are the key takeaways from Mama’s Creations’ conference call:

• Revenue, profitability, and EBITDA all grew sharply in Q1 fiscal 2027, with revenue up 49.7% to $52.8 million, net income up 66.3% to $2.1 million, and adjusted EBITDA up 71.2% to $4.9 million.
• Gross margin was pressured by startup and integration costs tied to new packaging technologies, protein form factors, and Bayshore integration, though management said the company remains on track to reach its mid-to-high 20% gross margin target as launches mature.
• The company completed ERP integration across all three facilities and also advanced WMS and launched its first TMS, which management said should improve procurement, inventory accuracy, route optimization, and operating leverage.
• New item launches and customer wins accelerated, including over a dozen new branded items at major retailers such as Walmart, Target, Food Lion, Albertsons, Weis, Fresh Market, and convenience/meal kit channels.
• Balance sheet strength and capacity remain supportive of growth, with $24.4 million in cash, $5.1 million of debt, and management saying the three-facility footprint plus recent acquisitions should support growth and selective M&A.

Mama’s Creations Trading Up 0.3%

Shares of NASDAQ:MAMA opened at $15.20 on Tuesday. Mama’s Creations has a 52-week low of $7.75 and a 52-week high of $17.85. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.71 and a current ratio of 2.17. The stock has a market capitalization of $618.79 million, a price-to-earnings ratio of 126.67 and a beta of 0.60. The stock’s 50-day simple moving average is $14.65 and its two-hundred day simple moving average is $14.40.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Wall Street Zen downgraded Mama’s Creations from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. DA Davidson reiterated a “buy” rating and issued a $25.00 price objective on shares of Mama’s Creations in a report on Wednesday, May 20th. Zacks Research downgraded Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, Weiss Ratings downgraded Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $18.80.

Insider Buying and Selling at Mama’s Creations

In other news, CEO Adam Laurance Michaels sold 16,223 shares of Mama’s Creations stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $15.30, for a total transaction of $248,211.90. Following the transaction, the chief executive officer directly owned 695,288 shares of the company’s stock, valued at $10,637,906.40. The trade was a 2.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.03% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Walleye Capital LLC purchased a new position in shares of Mama’s Creations during the 2nd quarter valued at about $87,000. Prudential Financial Inc. bought a new stake in Mama’s Creations during the 2nd quarter valued at approximately $100,000. Verition Fund Management LLC bought a new stake in Mama’s Creations during the 3rd quarter valued at approximately $105,000. Envestnet Asset Management Inc. bought a new stake in Mama’s Creations during the 3rd quarter valued at approximately $117,000. Finally, Bridgeway Capital Management LLC bought a new stake in Mama’s Creations during the 4th quarter valued at approximately $135,000. 45.18% of the stock is owned by hedge funds and other institutional investors.

Mama’s Creations Company Profile

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.