Shares of nutrition products company Bellring Brands (NYSE:BRBR)
fell 33.3% in the afternoon session after the company reported disappointing third-quarter financial results and narrowed its fiscal year 2025 outlook. The sell-off appeared driven by concerns over retailer inventory levels. In May, BellRing first revealed that several key retailers decided to lower their on-hand supply of its nutritional products. This action created a significant headwind for third-quarter growth. Regardless, the quarter itself was fine as BRBR beat across the board (organic revenue growth, total revenue, and EBITDA). However, margins narrowed and EBITDA guidance for the full year fell below expectations. The stock's reaction suggests the market was expecting more given the underwhelming outlook.
Let's have a look at what is happening on the US markets one hour before the close of the markets on Tuesday. Below you can find the top gainers and losers in today's session.
Stay up-to-date with the latest market trends in the middle of the day on Tuesday. Explore the top gainers and losers during today's session in our detailed report.
Nutrition products company Bellring Brands (NYSE:BRBR) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 6.2% year on year to $547.5 million. The company expects the full year’s revenue to be around $2.3 billion, close to analysts’ estimates. Its non-GAAP profit of $0.55 per share was 9.9% above analysts’ consensus estimates.
Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs,
and this paradigm has rung true over the past six months as the sector’s -5.7% decline paled in comparison to the S&P 500’s 5.7% gain.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Shares of nutrition products company Bellring Brands (NYSE:BRBR)
jumped 6.5% in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn’t played its shielding role over the past six months as it tumbled 14.1%. This drop was much worse than the S&P 500’s 1.8% decline.
Shareholders of BellRing Brands would probably like to forget the past six months even happened. The stock dropped 20.9% and now trades at $62.14. This might have investors contemplating their next move.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the shelf-stable food industry, including BellRing Brands (NYSE:BRBR) and its peers.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Nutrition products company Bellring Brands (NYSE:BRBR) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 18.9% year on year to $588 million. On the other hand, the company’s full-year revenue guidance of $2.3 billion at the midpoint came in 0.7% below analysts’ estimates. Its non-GAAP profit of $0.53 per share was in line with analysts’ consensus estimates.
