Armanino Foods Posts Y/Y Q4 Earnings Rise, Expands Stock Buyback Plan

Shares of Armanino Foods of Distinction, Inc. AMNF have gained 1.2% since it reported earnings for the fourth quarter of 2024. This compares to the S&P 500 index’s 1.7% slip over the same time frame. Over the past month, the stock has risen 4.2% against the S&P 500’s 3.8% decline.Record-Setting Sales & Profit GrowthArmanino delivered a strong performance in fourth-quarter 2024, setting records for quarterly sales and profits. The company reported earnings per share of 13 cents, a 62.5% increase from earnings of 8 cents in fourth-quarter 2023.The company reported its highest-ever quarterly and annual sales and profits in the fourth quarter of 2024, marking the third consecutive quarter of record-breaking results. Fourth-quarter net sales were $18.5 million, a 15% increase from $16.1 million in the prior-year quarter. Income before taxes surged 65% to $5.6 million from $3.4 million a year earlier.Armanino Foods of Distinction Inc. Price, Consensus and EPS Surprise  Armanino Foods of Distinction Inc. price-consensus-eps-surprise-chart | Armanino Foods of Distinction Inc. QuoteKey Business MetricsGross profit improved significantly due to higher sales and cost efficiencies. The company reported a fourth-quarter gross profit of $9.3 million, up from $6.3 million in the same period last year, as the cost of goods sold declined from $9.8 million to $9.2 million. For the full year, gross profit rose to $30.6 million from $21.9 million in 2023, reflecting improved cost management.Operating expenses also grew in the quarter, with general, administrative and selling expenses increasing to $1.6 million from $1.3 million a year ago. Salaries and wages rose to $2.1 million from $1.5 million. Total operating expenses climbed 29% to $4 million from $3.1 million.Armanino Foods strengthened its balance sheet, reporting a record net working capital of $26.6 million as of Dec. 31, 2024, up 14% from $23.4 million a year earlier. Total current assets increased 18% to $42 million, driven by robust sales growth and improved profitability. However, current liabilities rose 26% to $15.4 million due to higher accruals related to the company’s Phantom Stock incentive program.Management Commentary & Strategic InitiativesActing president and CEO Edgar Estonina attributed the company’s record-breaking performance to successful sales and operational strategies. These included improved procurement of raw materials, increased manufacturing efficiencies and the benefits of ongoing capital improvement projects. Additionally, the company benefited from one-time factors in the fourth quarter, including refunded trade spend deductions and volume discounts on raw materials.Despite the strong financial results, management remains cautious about potential industry headwinds. Estonina noted signs of a possible industry slowdown and emphasized the company’s focus on maintaining cost efficiency and securing competitive pricing for raw materials. He reaffirmed management’s confidence in Armanino’s financial stability and long-term growth strategy, which includes product development, expansion into new markets and potential acquisitions.Stock Buyback ExpansionArmanino’s board of directors approved a $5-million increase in the company’s stock repurchase program, bringing the total authorization to $12 million. As of Feb. 28, 2025, the company had repurchased $3.2 million in shares, leaving $8.8 million available for further buybacks. Chairman Douglas R. Nichols stated that the decision reflects the board’s confidence in management’s ability to sustain strong financial performance.Other DevelopmentsLooking ahead, Armanino Foods plans to continue investing in operational efficiencies and growth opportunities. While no acquisitions were announced in the latest earnings release, management indicated that acquisitions remain a potential avenue for expansion. The company also reaffirmed its commitment to maintaining financial flexibility and returning value to shareholders through dividends and buybacks.Overall, Armanino Foods delivered record-breaking financial results for both the quarter and the full year, supported by strong sales, cost management and operational efficiencies. While management remains watchful of potential industry challenges, the company’s solid financial position and strategic initiatives suggest continued momentum in the near term.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armanino Foods of Distinction Inc. (AMNF): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks