The latest quarterly earnings from Simply Good Foods, the company behind popular “Better-for-You” snack brands, have left analysts adopting a more guarded stance. The report, covering the fourth fiscal quarter of 2025, fell short of market expectations and included a significant non-cash impairment charge.
Financial Performance and Impairment Charge
For the quarter, Simply Good Foods posted adjusted earnings per share of $0.46, missing the consensus estimate of $0.48. Revenue declined by 1.8% year-over-year to $369.04 million. A major factor impacting the results was a one-time, non-cash impairment charge of approximately $60 million related to the Atkins brand and other intangible assets.
Divergent Moves by Major Shareholders
Investor activity surrounding the stock presents a mixed picture. During the second quarter, prominent institutional investors including JPMorgan Chase and Quantbot Technologies substantially increased their holdings. However, insider transactions in November sent conflicting signals. Chief Accounting Officer Timothy Allen Matthews sold roughly a quarter of his position, while Chief Financial Officer Christopher J. Bealer boosted his stake by over 40%.
Should investors sell immediately? Or is it worth buying Simply Good Foods?
Analyst Sentiment Cools, Price Targets Lowered
The earnings release triggered a wave of revised assessments from research firms, with several lowering their price targets.
* UBS adjusted its target down to $23.00 from $27.00, maintaining a “Neutral” rating.
* Jefferies reduced its target to $27.00 from $32.00, advising investors to “Hold.”
* Zacks Research took a more bearish turn, downgrading the stock from “Hold” to “Strong Sell.”
* Morgan Stanley and Deutsche Bank issued targets of $24.00 and $26.00, respectively.
Currently trading around $19 per share, the equity sits well below its 200-day moving average of $27.61. Looking ahead, analysts now project earnings per share of $1.78 for the current fiscal year. Market participants are likely to focus on the upcoming first-quarter 2026 results for clearer direction on the company’s trajectory.
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