Company says market conditions remain soft but reports a rebound in orders during August
National Beverage expects recently instituted pricing actions to improve performance
Company continues to monitor volatile input costs and tariffs impacting margins
Overview
U.S. beverage maker's fiscal Q1 sales were flat yr/yr, EPS declined
Company attributed sales weakness to consumer sentiment and tariffs, margins pressured by higher input costs
Company paid $304 mln special dividend during the quarter
Result drivers and key details
Volume declines - Co said higher average selling prices were largely offset by lower volumes due to weak consumer sentiment and tariffs
Higher input costs - Gross margin was affected by higher packaging and ingredient costs, especially elevated aluminum costs and tariffs, as well as increased fuel and freight expenses
Tariff cost absorption - Co said it absorbed a portion of tariff-related cost increases at the request of the current administration
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "buy"
Wall Street's median 12-month price target for National Beverage Corp. is $32.00, about 4.8% above its September 9 closing price of $30.54
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
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