The Real Good Food (NASDAQ: RGF) has confirmed the earnings release date for its Q4 2021 earnings report, which will be on Friday, March 11, 2022, before the market opens.
What to look for: in November, the company announced its successful IPO and reported a solid Q3 2021 result. Ahead of the fourth-quarter results, it is expected that the company will better Q3 performance. The company is in the early phases of addressing its addressable market prospects, and it is has been working to attain gross margins in line with peers. When the company releases Q4 2021 results, investors will be keen on how strong the brand's in the market relative to consumer demand for low carb and high protein foods.
Earnings: Stockearning’s Estimated EPS for the fourth quarter is expected to be $0.19 per share. In the last quarter, the company had an EPS loss of $99.29. Historical EPS performance indicates that the company has for the past 12 quarters not missed, matched, or topped earnings estimates. Net loss in the third quarter increased by $7.6 million compared to a net loss of $4.2 million in Q3 2020.
Revenue: net sales in the third quarter increased 136% to around $23 million, with the increase attributed to strong sales volumes growth in core products Breakfast and Entrees. Gross profit was up to $2.5 million and was 10.2% of total net sales relative to a loss of $0.2 million a year before.
Stock movement: Since the company has been trading publicly for two quarters, price movement data isn't adequate to model historical price movement after the earnings release. The third quarter was the first the company reported publicly, so the Stockearning algorithm's predicted volatility after the first and seventh day can be established after establishing historical trends.
What analysts are saying: Jefferies analyst Rove Dickerson commenced coverage on RGF with a Buy rating and a price target of $16 represents an upside of 75% in the next 12 months. In a research note, Dickerson describes Real Good Food as a "disruptive" improved frozen food firm that is revamping home cooking to be low carb and high-protein. The company's "strong distribution growth potential and route to more than double margins by 2025, according to the analyst, are supported by its "differentiated" offerings, current market strategy, and "scalable" manufacturing capabilities.
Truist analyst Bill Chappell commenced coverage on the stock with a Buy rating and price target of $15. Chappell told investors that the firm is disrupting the frozen sector category with unique wellness and health-focused products line. He added that Real Good Food could sustain the fast expansion of its sales base in the coming years as it plans to create brand awareness, enabling it to bring its brand to the tangential frozen food sector.
William Blair analyst Jon Andersen commenced coverage on RGF with a Buy rating but didn’t set a price target. Andersen told investors in a research note that the company’s addressable market is estimated to be around $30 billion that includes core and frozen segments, and going forward, it is likely to derive preponderance of growth from the frozen entrees and breakfast offerings. According to the analyst, there is considerable white space opportunity, and the company's current distribution is just a small proportion of the category leaders.
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