Schiff Nutrition International (SHF) has reported positive earnings surprises in two out of the past three quarters, and is scheduled to deliver fiscal fourth-quarter results on July 23. Earnings estimates for this nutritional supplement company have been trending higher, which made it a Zacks #1 Rank (Strong Buy) stock on July 13, 2012. <\/p>\n
Solid Third Quarter <\/p>\n
On March 22, Schiff Nutrition reported adjusted earnings per share of 16 cents for its fiscal third quarter of 2012, beating the Zacks Consensus Estimate by 33.3% and the year-ago result by 14.3%. Net income increased 14.5% year over year to $4.6 million. Adjusted EBITDA was $9.3 million, up 25.7% from a year ago. <\/p>\n
Net sales climbed 25.0% to $72.2 million, beating the Zacks Consensus Estimate by 9.9%. The growth in top-line partly reflects new offerings and progression of key brands. Selling and marketing expense amounted to 25% of revenue in the reported quarter, higher than 14% in the year-ago period. <\/p>\n
The company raised its revenue guidance for fiscal 2012 to between 16% and 19% from the earlier projection of 12% to 15%. The gross margin range has been lifted to between 44% and 46% from 43% to 45% earlier. Schiff Nutrition continues to project operating margin in the upper single-digits for the fiscal year. <\/p>\n
Earnings Estimates on an Incline <\/p>\n
The Zacks Consensus Estimate for fiscal 2012 has risen 4% in the last two months to 52 cents per share, representing an estimated year-over-year growth of 20.9%. For 2013, the Zacks Consensus Estimate moved up 12.5% in three months to 72 cents, reflecting an implied growth of 38.9%. <\/p>\n
Stretched Valuation <\/p>\n
Schiff Nutrition trades at a premium to its peers by most metrics, such as price-to-earnings and price-to-sales. The stock is currently trading at a forward P\/E of 26.3x, an 81.7% premium to the peer group average of 14.5x. Similarly, on a price-to-sales basis, the stock is trading at 1.7x, 36.0% higher than its peer group average of 1.25x. The trailing 12 month return on equity (:ROE) of 14.4% is in line with the peer group average. <\/p>\n
Chart Reveals Strength <\/p>\n<\/p>\n
View post: Schiff Nutrition International (SHF) has reported positive earnings surprises in two out of the past three quarters, and is scheduled to deliver fiscal fourth-quarter results on July 23. Earnings estimates for this nutritional supplement company have been trending higher, which made it a Zacks #1 Rank (Strong Buy) stock on July 13, 2012 Continue reading
\nSchiff Nutrition Int'l (): Zacks Rank Buy<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"