Overview
- Shares rose 9.4% to $28.73 on Wednesday after falling following the report, as investors reassessed the results and outlook.
- Q4 net sales reached $648.2 million, up 16.6% and above estimates, while adjusted EPS came in at $0.51 versus the $0.55 consensus.
- Adjusted gross margin fell to 29.7% from 35.9% a year earlier due to higher input costs, increased promotional spending, and packaging redesign expenses.
- Volume gains drove growth at core brands, with Premier Protein sales up 14.9% on roughly 18% volume growth and Dymatize up 32.9%, offset by negative price/mix.
- 2026 net sales guidance of $2.41–$2.49 billion trailed the Street, the long-term net sales growth target was cut to 7%–9%, and the company reaffirmed an 18%–20% adjusted EBITDA margin goal while flagging tougher category competition.