Why Lifeway Foods Stock Popped Today

• Lifeway bushed connected income but missed connected net this greeting -- and escaped currency travel fell disconnected a cliff.

• The kefir shaper is increasing income nicely, but currency profits are down 90% twelvemonth implicit year.

• 10 stocks we similar amended than Lifeway Foods ›

Lifeway Foods (NASDAQ: LWAY) banal jumped 7.8% done 9:50 a.m. ET Wednesday aft the institution reported mixed net for the 3rd 4th this morning.

Heading into the quarter, analysts forecast the kefir institution would gain $0.28 per stock connected income of $55 million. In fact, Lifeway ended up earning lone $0.23 per share, but its income topped $57.1 cardinal -- an net miss but a gross beat.

Focusing connected the "beat" fractional of its report, Lifeway boasted that its $57.1 cardinal successful gross acceptable a caller grounds for the company, rising 29% twelvemonth implicit twelvemonth -- its sixth consecutive 4th of uninterrupted quarterly nett income growth. Gross borderline expanded by 3 afloat percent points to 28.7%, and connected the bottommost line, Lifeway grew its net per stock by 21%.

Lifeway maintains a "dominant presumption successful the kefir category," said institution CEO Julie Smolyansky, and Lifeway plans to "continue to capitalize connected the almighty wellness and wellness user trends, including the surge successful GLP-1 medicine usage and gut wellness awareness."

It's not astatine each wide what narration Lifeway has to GLP-1 value nonaccomplishment drugs -- but a small name-dropping ne'er wounded anyone I guess.

Not each the quality astatine Lifeway is good, of course. Most crucially, portion income are increasing nicely and mostly accepted accounting principles (GAAP) profits astir arsenic well, Lifeway's struggling to nutrient decent escaped currency travel (FCF) to lucifer its reported earnings. Year to date, currency nett totals lone astir $1 million. That's much than a 90% driblet from this clip past twelvemonth -- and little than 9% of the company's reported $11.3 cardinal successful GAAP nett net this year.

Until Lifeway gets backmost to generating amended FCF than this, I cannot telephone the banal a buy.

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