Does the Street Have Smart Balance Figured Out?

Updated

Smart Balance (NAS: SMBL) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Smart Balance's revenues will increase 31.2% and EPS will wither -28.6%.

The average estimate for revenue is $77.4 million. On the bottom line, the average EPS estimate is $0.05.


Revenue details
Last quarter, Smart Balance reported revenue of $79.3 million. GAAP reported sales were 33% higher than the prior-year quarter's $59.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.06. GAAP EPS of $0.06 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 44.2%, 330 basis points worse than the prior-year quarter. Operating margin was 9.8%, 290 basis points worse than the prior-year quarter. Net margin was 4.7%, 120 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $336.3 million. The average EPS estimate is $0.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 268 members out of 289 rating the stock outperform, and 21 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Smart Balance a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smart Balance is outperform, with an average price target of $7.89.

Over the decades, small-cap stocks like Smart Balance have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

The article Does the Street Have Smart Balance Figured Out? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement