NASDAQ$JJSF

J&J Snack Foods Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

J&J Snack Foods' first quarter net sales increased and led to higher EPS.

J&J Snack Foods reported a strong first quarter with net sales increasing by 32% to $318.5 million and EPS of $0.58, driven by positive consumer trends and healthy demand for core products.

  • Net sales increased 32% year-over-year and 17% versus the same period in fiscal 2019.
  • Food Service segment grew 32%, Retail grew 9%, and Frozen Beverages grew 54%.
  • Gross margin was 25%, compared to 21% for the prior year.
  • The company is implementing price increases and focusing on cost reduction initiatives to improve gross margins.

Headline financials

Total Revenue

$318M

Previous: $241M+32.2%
EPS (adj)

$0.58

Previous: $0.09+544.4%
Capital Expenditures

-$16.1M

Previous: -$9.68M-66.4%
Free Cash Flow

-$5.01M

Previous: -$7.9M+36.6%
Net Income

$11.1M

Previous: $1.78M+523.8%
Operating Income

$14.8M

Previous: $578K+2468.3%
Gross Profit

$79.4M

Previous: $50.1M+58.4%
Cash & Equivalents

$268M

Previous: $228M+17.6%
Total Assets

$1.11B

Previous: $1.05B+5.7%
Stock-Based Comp

$1.08M

Previous: $1.24M-12.9%

Revenue & EPS history

J&J Snack Foods · Revenue · Quarterly

$318M

Q1 2022+32.2%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company expects gross margins to improve progressively over the second quarter of fiscal 2022 and into the back-half of the fiscal year through cost reduction and price increases.

Tailwinds

  • Specific actions to offset short-term cost challenges.
  • Opportunities to reduce expenses across the business, including procurement, R&D, production and distribution.
  • Four new production lines scheduled to be activated in fiscal 2022 that will leverage automation to improve efficiencies.
  • Implementing additional price increases for products across nearly all categories.
  • Strong balance sheet and liquidity position to continue making select return-focused strategic investments in sales, marketing and product innovation.

Headwinds

  • Industry continues to experience unprecedented inflationary pressures.
  • Higher-than-expected cost increases across many facets of the business, from raw materials and ingredients, to transportation, packaging and labor.
  • Expenses were negatively impacted by industry-wide freight and distribution cost increases.
  • Distribution costs were 10.5% of sales in the quarter, an increase of 96 bps versus the prior year period.
  • Handheld sales declined 54% to $1.3 million driven by proactive discontinuations of margin dilutive products.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.2%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.0%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+16.1%

Q2 2024

Best reaction

-15.4%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.2%-16.9%-10.9%
Q1 2026-15.4%-13.3%-10.1%
Q4 2025+1.1%+9.3%+13.9%
Q2 2025-11.8%-11.8%-13.8%
Q1 2025-6.5%-7.8%+4.0%
Q4 2024-4.8%-5.5%-4.0%
Q3 2024+1.7%+1.5%+2.4%
Q2 2024+16.1%+18.2%+18.0%
Q1 2024-9.6%-7.5%-10.1%
Q4 2023+2.9%+3.7%+4.1%
Q3 2023+7.8%+9.3%+3.2%
Q2 2023+3.2%+6.3%+0.5%
Q1 2023-4.2%-5.6%-6.1%
Q4 2022+7.8%+11.2%+11.0%
Q3 2022+0.0%+3.5%+7.9%
Q2 2022-11.4%-17.4%-15.9%
Q1 2022-1.0%-0.3%+8.8%
Q4 2021-1.8%-6.7%-2.3%
Q3 2021-0.0%-1.4%-2.9%
Q2 2021-2.5%-1.1%+4.1%
Q1 2021+7.7%-0.3%+2.1%
Q4 2020-1.5%+14.8%+3.2%
Q3 2020-1.9%-4.2%+3.1%
Q2 2020+7.3%+4.8%+17.0%
Q1 2020-11.5%-11.0%-7.9%
Q4 2019-4.9%-4.5%-0.8%
Q3 2019+13.0%+11.1%+15.4%
Q2 2019+0.8%+3.5%+2.7%
Q1 2019+8.5%+7.1%+5.7%
Q4 2018-1.3%-2.6%-2.2%
Q3 2018-5.5%-7.8%-6.4%
Q2 2018-5.0%-4.6%+3.3%
Q1 2018-6.5%-7.9%-9.7%
Q4 2017+4.2%+8.5%+14.6%
Q3 2017-5.3%-4.6%-7.3%
Q2 2017+1.3%+0.1%-1.3%
Q1 2017+0.6%+1.4%+2.5%
Q4 2016-3.4%-1.7%+2.0%
Q3 2016+0.4%+0.4%+0.2%
Q2 2016-0.1%
Q1 2016-1.2%
Q4 2015-7.3%
Q3 2015+5.4%
Q2 2015+2.9%
Q1 2015-14.0%
Q4 2014+0.2%
Q3 2014+2.5%
Q2 2014-2.1%
Q1 2014+8.4%
Q4 2013-2.8%
Q3 2013-1.4%
Q2 2013+2.4%
Q1 2013+3.5%
Q4 2012+2.1%
Q3 2012-1.1%
Q2 2012+10.3%
Q1 2011-4.9%
Q1 2012-4.9%
Q4 2009+2.7%
Q2 2011+2.7%
Q4 2011+2.7%
Q3 2011+3.8%
Q3 2010+3.8%
Q4 2010+3.8%
Q2 2010+1.6%

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