SMPL - Simply Good Foods trades in red despite Q3 earnings beat; provides 1H21 guidance

"At the height of the restrictions in Q3, the nutritional snacking category declined ~30% and, as movement restrictions eased late in Q3 and into FQ4, performance improved. Consequently, our retail takeaway sequentially improved Q/Q," Simply Good Foods ([[SMPL]] -5.4%) president & CEO Joseph E. Scalzo commented.Net income rose 104% to $12.4M; adj. EBITDA was up 53.5% on inclusion of Quest, the greater than anticipated increase in net sales (+59.7% Y/Y to $222.3M) and strong cost controls.Net income and adj. EBITDA gains were partially offset by a $3M impairment charge related to the SimplyProtein brand that was subsequently sold on Sep.24, 2020.Net sales were driven by 67.7% growth in Quest and drop of 8% in Legacy Atkins; Q4 e-commerce sales were up 55% and 77% for full year.In 1H21, net sales are seen between $425-$435M and adj. EBITDA in the range of $77-$82M.FY21 gross margin is seen at FY20 levels (39.7%); adj. EBITDA

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Simply Good Foods trades in red despite Q3 earnings beat; provides 1H21 guidance