Mama's Creations Q2 revenue rises 55%, beating estimates on new product launches
MAMA•Balance sheet and outlook
Mama's Creations completed a $108.6 million stock offering, boosting cash to $138.6 million.
The company targets mid-to-high-20% corporate gross margin going forward and said its strong balance sheet enables pursuit of accretive M&A opportunities.
It expects new product placements and expanded distribution to support future growth.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy," with 8 "strong buy" or "buy" ratings, no "hold" ratings and no "sell" or "strong sell" ratings.
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Mama's Creations Inc is $21.00, about 34.4% above its Sept. 2 closing price of $15.63.
The stock recently traded at 54 times the next 12-month earnings versus a P/E of 52 three months ago.
Q2 revenue and EBITDA beat expectations
Mama's Creations' fiscal second-quarter revenue rose 55% and beat analyst expectations, while adjusted EBITDA rose 69% and also beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $54.60 mln | $52.85 mln (8 Analysts) |
| Q2 EPS | $0.06 | ||
| Q2 Net Income | $2.60 mln | ||
| Q2 Adjusted EBITDA | Beat | $5.50 mln | $4.90 mln (8 Analysts) |
