SMPL - Simply Good Foods' Strong Top Line Is Undermined by Acquisition Costs
Wellness-oriented consumer packaged goods distributor The Simply Good Foods Company (NASDAQ: SMPL) outperformed its revenue projections in the first three months of its 2020 fiscal year. Results issued Thursday before the market opened revealed healthy core growth, as well as a revenue bump from the company's $1 billion acquisition of Quest Nutrition in November.
However, transaction costs and new overhead from the acquired operations pushed the bottom line into the red. In response to those numbers, investors sold off Simply Good Foods' shares. The stock price was down roughly 8.5% just after 1 p.m. on Thursday. As we break down the report below, note that all comparative numbers are presented against those of the prior year's quarter.
Data source: The Simply Good Foods Company. N/A=not applicable due to current-period loss.