Zacks Investment Research upgraded
J&J Snack Foods
) to a Zacks Rank #1 (Strong Buy) on Jan 30, 2013.
Why the Upgrade?
On Jan 28, 2013, J&J Snack Foods reported a solid first
quarter of fiscal 2013 (ended Dec 29, 2012) financial results.
Earnings per share of 54 cents were 86% above the year-ago
earnings and 22.7% above the Zacks Consensus Estimate of 44
Revenue increased by 11% to $172.7 million on the back of strong
growth in foodservice and frozen beverage businesses. Sales in
the Food Service segment were driven primarily by improvement in
soft pretzels, churros and bakery product sales while Frozen
Beverages revenue grew as sales of beverages as well as machines
Operating margin in the quarter stood at 7.9%, up 300 basis
points year over year. Slight increase in cost of sales and
operating expenses were more than offset by higher revenue
Four straight quarters of positive earnings surprise, with the
average being 13.5%, raises optimism for a better quarter ahead.
For the second quarter and fiscal year 2013, we have an Earnings
ESP (Read: Zacks Earnings ESP: A Better Method) of +5.0% and
Following the first quarter results, in the last 7 days, the
Zacks Consensus Estimate for fiscal 2013 increased by 4.1% to
$3.27 while that for fiscal 2014 went up 4.5% to $3.51.
Other Stocks to Consider
The stock currently bears a Zacks Rank #1 (Strong Buy). Other
stocks worth a look in the industry are
B&G Foods Inc.
Flowers Foods, Inc
), each holding a Zacks Rank #1 (Strong Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
INGREDION INC (INGR): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
To read this article on Zacks.com click here.