Armanino Foods Q3 net sales rise 10% on food-service, international growth

Overview

• U.S. frozen Italian foods maker's Q3 net sales rose 10% yr/yr, led by foodservice and international growth

• Non-GAAP net income and EPS rose double digits; reported EPS fell 3% due to facility relocation costs

• Company expanded secondary sauces and international sales; manufacturing expansion remains on schedule

Outlook

• Company anticipates inflation, tariffs, and commodity cost pressures to intensify in Q4

• Company expects manufacturing transition expenses and inventory investments to continue into Q2 2027

• Company targets Mountain House facility production start in Q2 2027

Result Drivers

• FOODSERVICE AND INTERNATIONAL GROWTH - Co said Q3 net sales rose 10% yr/yr, driven by momentum in core U.S. Foodservice, National Accounts, and International markets

• SECONDARY SAUCES EXPANSION - Co reported 20% growth in secondary sauces, reflecting progress in expanding specialty sauces beyond pesto

• FACILITY RELOCATION COSTS - Reported profit metrics were affected by costs related to relocating production to the new Mountain House facility

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 Armanino Foods of Distinction, Inc. is $15.00, about 21.5% above its November 9 closing price of $12.35

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Nov 10 - Italy's NewPrinces nine-month revenue jumps on acquisitions

• Nov 9 - Dole Q3 revenue meets expectations on North America volumes

• Nov 9 - Rave Restaurant Group Q1 revenue rises 3.4%, net income up

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)