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Marzetti shares rise as Q4 margins improve and earnings grow
Fiscal Q4 revenue fell 2.2% to $465 million, but gross margin expanded by more than 200 basis points amid cost cuts and operating improvements.
The Marzetti Company’s NASDAQ: MZTI stock rose after the company reported fiscal Q4 results that showed improved profitability and capital return progress. MarketBeat Ratings said the quarter confirmed what the outlet described as a head and shoulders reversal pattern after weakness in prior quarters.
According to MarketBeat Ratings, adjusted earnings grew 9% and the company reported better-than-expected margin performance. Gross margin increased by more than 200 basis points, helped by cost cutting and operational improvements, though higher SG&A and operating costs partially offset those gains and were linked to acquisition and integration.
Revenue totaled $465 million, down 2.2% year over year and slightly below consensus, with MarketBeat Ratings attributing the decline to a non recurring contract in the prior year. The company also cited limited analyst coverage and tepid revision activity, noting its market cap of $3.2 billion and its branded sauces and frozen bread model for retail outlets.
Business trends showed some improvement, with a 0.4% systemwide gain and a 0.9% increase in the retail channel supported by acquisition, while the Food Service segment fell 5.3% reported, though only 0.1% on an adjusted basis. MarketBeat Ratings highlighted Marzetti’s Dividend King status and said the results supported improved capacity for capital return despite being temporarily impaired by a recent acquisition.
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