Mama’s Creations (NASDAQ:MAMA) Releases Earnings Results, Beats Estimates By $0.01 EPS

Mama’s Creations (NASDAQ:MAMA) released its quarterly earnings data on Thursday. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.01, Zacks reports. The business had revenue of $54.58 million during the quarter, compared to analyst estimates of $52.85 million. Mama’s Creations had a net margin of 3.21% and a return on equity of 14.69%.

Here are the key takeaways from Mama’s Creations’ conference call:

• Q2 revenue rose 55% to $54.6 million, while adjusted EBITDA increased 69% to $5.5 million and net income more than doubled to $2.6 million. Adjusted EBITDA margin expanded to 10.1% as operating expenses declined 160 basis points as a percentage of revenue.
• Mama’s ended the quarter with $138.6 million in cash and only $4.8 million of debt, following its July equity offering and strong operating cash flow. Management said the stronger balance sheet enables larger, strategically focused, and potentially accretive acquisitions involving capabilities, capacity, or customer access.
• Distribution momentum continued with a planned launch in more than 100 Kroger stores, a new breaded chicken item in 300 Sam’s Club locations, Walmart expansion to more than 2,300 stores, and an all-region Costco multi-vendor mailer expected to exceed last year’s revenue.
• Gross margin improved sequentially to 24.0% from 23.6%, but remained below the prior year’s 24.9% as the company invested more heavily in trade promotion. Management expects further improvement toward its mid- to high-20% target through greater chicken-bottom mix, Bay Shore efficiencies, and production scale, though product velocity and portfolio cleanup remain execution factors.

Mama’s Creations Trading Up 2.1%

Shares of NASDAQ:MAMA opened at $15.96 on Friday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.90 and a current ratio of 2.32. The stock’s 50-day moving average is $17.62 and its 200-day moving average is $16.12. The company has a market cap of $653.40 million, a P/E ratio of 114.00 and a beta of 0.56. Mama’s Creations has a 52-week low of $8.67 and a 52-week high of $21.00.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Wall Street Zen downgraded shares of Mama’s Creations from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. DA Davidson reaffirmed a “buy” rating and issued a $25.00 price target on shares of Mama’s Creations in a research report on Monday, July 13th. William Blair started coverage on Mama’s Creations in a research note on Friday, July 24th. They set an “outperform” rating for the company. Zacks Research lowered Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. Finally, Weiss Ratings lowered Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Mama’s Creations has a consensus rating of “Moderate Buy” and an average price target of $19.83.

Institutional Trading of Mama’s Creations

Several hedge funds have recently added to or reduced their stakes in the business. Walleye Capital LLC bought a new position in Mama’s Creations in the 2nd quarter worth approximately $87,000. Prudential Financial Inc. bought a new stake in shares of Mama’s Creations in the second quarter valued at approximately $100,000. Verition Fund Management LLC acquired a new stake in shares of Mama’s Creations in the third quarter worth $105,000. Envestnet Asset Management Inc. acquired a new stake in shares of Mama’s Creations in the third quarter worth $117,000. Finally, Bridgeway Capital Management LLC bought a new position in Mama’s Creations during the fourth quarter worth $135,000. Institutional investors own 45.18% of the company’s stock.

Mama’s Creations Company Profile

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.