Nomad Foods’ Stock Rises Ahead of Q4 Earnings, But Retail’s Cautious

Shares of frozen foods maker Nomad Foods (NOMD) rose 1.5% on Friday ahead of the company’s fourth-quarter earnings, with retail sentiment staying cautious.

Nomad Foods is scheduled to report earnings before the market opens on Monday.

Wall Street analysts expect the company to post earnings per share of $0.39 on revenue of 
$825.51 million, according to Stocktwits data.

Nomad Foods has beaten EPS estimates four times in the past four quarters. But it missed revenue estimates twice in the same period.

Sentiment on Stocktwits turned ‘neutral’ on Friday compared to ‘extremely bullish’ a week ago.  To be sure, message volume fell to the ‘extremely low’ zone from ‘normal.’

For the third quarter, its revenue increased 0.8% to EUR 770 million (about $799 million) from the year-ago period. The revenue rise included a 0.3% rise in organic revenue, driven by favorable volume growth of 0.7%, according to the company.

Adjusted profit for Q3 increased 22% to €89 million, with adjusted EPS coming in at €0.55.

For the full year 2024, Nomad said it expects organic revenue growth between 1% and 2%, versus its prior guidance of 3%-4%, due largely to an enterprise resource planning (ERP) related challenge it faced in 3Q as well as conservative growth assumptions for the remainder of the year.

"The results this quarter are impressive given greater than anticipated headwinds related to ERP implementation that we have faced. Our service levels were negatively impacted during the transition but are returning to near normal levels,” said Stéfan Descheemaeker, Nomad Foods’ CEO.

Nomad Foods' portfolio includes such brands as Birds Eye, Findus, iglo, Ledo and Frikom.

Nomad Foods stock is up 12.6% year-to-date.

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