Overview

• US snack foods maker's Q2 sales fell 3.2%, slight miss to analyst expectations

• Adjusted EPS for Q2 rose 14% yr/yr but missed analyst expectations

• Company repurchased $22 mln in stock during the quarter

Outlook

• Company did not provide specific financial guidance for the current or upcoming periods

Result Drivers

• BAKERY BUSINESS REDUCTION - Most of the sales decline was due to anticipated reductions in the lower margin bakery business

• TRANSFORMATION INITIATIVES - Gross margin improvement was primarily driven by transformation initiatives and product mix improvements

• SEGMENT MIXED PERFORMANCE - Food service and retail supermarket sales declined, while frozen beverage sales increased

Company press release: ID:nGNX5DvQJC

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Slight Miss*	$344.82 mln	$347.70 mln (3 Analysts)
Q2 Adjusted EPS	Miss	$0.40	$0.41 (3 Analysts)
Q2 EPS		$0.09
Q2 Net Earnings		$1.68 mln
Q2 Gross Profit		$99.29 mln
Q2 Operating Income		$1.80 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for J&J Snack Foods Corp is $110.00, about 30% above its May 5 closing price of $84.59

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

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