J&J Snack Foods Reports Strong Q2 2024 Earnings, Expects Momentum in 2H 2024

Benchmark's Todd Brooks raised their price target on J&J Snack Foods (NASDAQ: JJSF) by 5.1% from $195 to $205 on May 8, 2024. The analyst maintained their Strong Buy rating on the stock.

In their report, Brooks described J&J Snack Foods' Q2 2024 earnings as "strong." The analyst also expressed confidence in the company's operational improvements, stating that they believe these efforts will lead to a more profitable operation with above-peer top-line growth.

The Q2 2024 financial results for J&J Snack Foods exceeded expectations. The company reported earnings per share (EPS) of $0.84, beating the Zacks Consensus Estimate of $0.63 and showing a significant increase of 95.3% compared to Q2 2023's $0.43. Additionally, J&J Snack Foods reported revenue of $359.73 million, surpassing the Zacks Consensus Estimate by 5.50% and showing a 6.5% increase from Q2 2023's $337.85 million. The company's adjusted EBITDA for Q2 2024 was $39.3 million, reflecting a 43.1% increase from Q2 2023's $27.5 million.

During the earnings call, J&J Snack Foods' CFO Ken Plunk emphasized the company's focus on maintaining a healthy balance sheet and prudent leverage position. He also highlighted the availability of $198 million in additional borrowing capacity under their revolver. Plunk stated, "We are executing our strategy, improving operational efficiencies and profit margins, and expanding growth opportunities across channels and customers."

Chairman, President & CEO Dan Fachner expressed satisfaction with the company's strong financial results for Q2 2024, which included the highest fiscal Q2 net sales in J&J Snack Foods' history. Fachner emphasized the company's commitment to executing their strategy, maximizing sales and new business opportunities, and investing in their capabilities and resources to improve overall operations. While monitoring consumer and inflationary trends, J&J Snack Foods expects to build momentum throughout the second half of 2024 and remains optimistic about delivering long-term value to their stakeholders.

It is worth noting that all top-rated analysts currently rate JJSF as a Strong Buy or Buy, with no analysts recommending a Hold or selling the stock. The consensus forecast among analysts for J&J Snack Foods' upcoming year is that it will deliver earnings per share (EPS) of $5.65, representing a year-over-year increase of 26.3%.

Since the release of J&J Snack Foods' Q2 2024 earnings report on May 6, 2024, the stock price has increased by 17.9%. However, on a year-over-year basis, the stock has only seen a modest 0.4% gain. During this period, J&J Snack Foods has been trailing the performance of the S&P 500, which has shown a 26.6% increase.

Benchmark analyst Todd Brooks is ranked in the top 26% of Wall Street analysts by WallStreetZen, with an average return of 3.1% and a 40.7% win rate. Brooks specializes in the Consumer Cyclical, Industrials, and Consumer Defensive sectors.

J&J Snack Foods Corp. is a company that manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. The company operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages. J&J Snack Foods offers a range of products, including soft pretzels, frozen novelties, churros, handheld products, bakery products, and frozen beverages. The company sells its products through various channels and serves a wide range of customers.

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