Position Monitor
The Week Ahead
Jan. 6: SMPL reports FQ1 results. The company's share price has run past the improvement in fundamentals after being recently added to the S&P 600 Small Cap index. An acquisition appears to be the only way for the company to meaningfully add EBITDA, but its leverage limits available targets.
Jan. 7: STZ reports FQ3 results, CAG reports FQ2 results, LW reports FQ2 results.
STZ - With three weeks remaining in the quarter management provided a business update. Management said the wine business guidance was unchanged while the beer business was tracking in line with the medium-term goals of 7-9% operating income growth. With improving inventory levels the beer division's performance is likely at the high end of the range. Our call with the largest beer distributor gives us conviction in the beer division's improving performance.
CAG - frozen food continues to be the top performing CPG category as the convenience has found new customers. Management guided EPS to $.70-.74. We are modeling EPS above the high end of management's range.
LW - the focus will be on the pricing environment and the recovery in the food service sector. We know the food sector decelerated during the quarter with additional restrictions on dining in North America and Western Europe. The pricing environment has held steady according to our conversations with industry participants.
Video Library
For a replay of our Year End Q&A call CLICK HERE.
For a replay of our beer distributor speaker call Click Here.
For a replay of our Grocery Themes Black Book CLICK HERE.
