Revenue Beats, Earnings Miss, But Growth Continues

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Revenue Beats, Earnings Miss, But Growth Continues

Lifeway Foods Reports Strong Q1 2024 Results

Lifeway Foods, Inc. (LWAY) reported its first-quarter 2024 results, exceeding expectations for revenue but falling short on earnings. Despite the earnings miss, both net sales and earnings saw year-over-year growth.

The company's success can be attributed to several factors, including strategic sales and marketing investments that have driven volume growth and increased consumer awareness. This has resulted in 18 consecutive quarters of growth and four consecutive quarters of record sales for Lifeway Foods.

Lifeway Foods has also demonstrated strong operational execution, favorable transportation costs, gross margin expansion, and net income growth. These strategic initiatives position the company well to capitalize on emerging opportunities and further solidify its market position.

Earnings: 16 cents per share, missing the Zacks Consensus Estimate of 24 cents but up from 6 cents in the same period last year.

$44.6 million, a 17.8% increase from $37.9 million in the prior-year quarter and exceeding the Zacks Consensus Estimate of $43 million.

$11.5 million, a significant 40.2% year-over-year improvement.

25.8%, expanding 410 basis points from 21.7% in the year-earlier quarter.

$7.8 million, a 17.8% increase from $6.7 million a year ago.

$12 million.

$63.5 million.

$1.5 million.

Lifeway Foods' shares have rallied 115.1% in the past three months, significantly outperforming the industry's growth of 22.2%.

The company's strong performance is driven by increased sales volumes of branded drinkable kefir.

Higher volumes of Lifeway branded products and favorable transportation costs have played a key role in driving gross profit growth.

Tyson Foods (TSN): Zacks Rank #2, average earnings surprise of 24.4% in the trailing four quarters.

Zacks Rank #2, trailing four-quarter earnings surprise of 3.5%.

Zacks Rank #2, trailing four-quarter earnings surprise of 4.4%.