Lifeway Foods (NASDAQ:LWAY) Posts Quarterly Earnings Results, Misses Estimates By $0.25 EPS

Lifeway Foods (NASDAQ:LWAY) issued its quarterly earnings data on Thursday. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.25), FiscalAI reports. Lifeway Foods had a return on equity of 12.60% and a net margin of 4.48%.The company had revenue of $66.89 million during the quarter, compared to analyst estimates of $61.40 million.

Here are the key takeaways from Lifeway Foods’ conference call:

• Record sales continued: Second-quarter net sales rose 24.1% year over year to $66.9 million, marking the 27th consecutive quarter of growth. First-half sales increased 29.9% to $129.9 million, led by Lifeway Kefir and Farmer Cheese.
• Profitability was pressured by inflation: Gross margin fell to 19.5% amid elevated milk prices, higher resin costs, and oil-related transportation expenses. Second-quarter net income was only $0.1 million, or $0.01 per share, and management expects dairy costs to remain a headwind in the third quarter.
• Distribution is expanding: Muscle Mates, Farmer Cheese, Kefir Butter, and other products secured additional placements at Walmart, Kroger, Target, Wegmans, Meijer, and regional retailers, while new food-service channels are broadening consumer trial opportunities.
• Capacity investments support future growth: The Waukesha facility expansion remains on track for completion in early 2027, which management expects will increase production capacity, improve efficiency, and provide flexibility to serve rising retail and food-service demand.

Lifeway Foods Trading Up 4.5%

Shares of LWAY stock opened at $25.82 on Friday. The company has a 50 day moving average price of $29.01 and a 200 day moving average price of $25.03. Lifeway Foods has a fifty-two week low of $17.31 and a fifty-two week high of $34.20. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.56 and a current ratio of 2.14. The stock has a market capitalization of $394.53 million, a P/E ratio of 36.89 and a beta of 0.44.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Weiss Ratings lowered Lifeway Foods from a “buy (b-)” rating to a “hold (c)” rating in a research report on Thursday. Wall Street Zen cut Lifeway Foods from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Benchmark reaffirmed a “buy” rating on shares of Lifeway Foods in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $35.00.

Insider Activity at Lifeway Foods

In other news, major shareholder Ludmila Smolyansky sold 100,000 shares of Lifeway Foods stock in a transaction that occurred on Wednesday, July 22nd. The shares were sold at an average price of $30.11, for a total transaction of $3,011,000.00. Following the completion of the sale, the insider directly owned 507,207 shares in the company, valued at approximately $15,272,002.77. This trade represents a 16.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Edward Smolyansky sold 111,548 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $29.26, for a total transaction of $3,263,894.48. Following the completion of the sale, the insider owned 902,642 shares in the company, valued at $26,411,304.92. This represents a 11.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 592,698 shares of company stock worth $17,070,367 in the last quarter. 18.58% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lifeway Foods

A number of hedge funds and other institutional investors have recently modified their holdings of LWAY. Strs Ohio acquired a new position in shares of Lifeway Foods in the first quarter valued at approximately $90,000. Rhumbline Advisers lifted its stake in shares of Lifeway Foods by 8.2% during the 1st quarter. Rhumbline Advisers now owns 6,068 shares of the company’s stock worth $148,000 after purchasing an additional 462 shares during the period. Geode Capital Management LLC lifted its stake in shares of Lifeway Foods by 6.6% during the 2nd quarter. Geode Capital Management LLC now owns 124,726 shares of the company’s stock worth $3,075,000 after purchasing an additional 7,718 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Lifeway Foods by 293.6% during the second quarter. JPMorgan Chase & Co. now owns 13,472 shares of the company’s stock worth $332,000 after purchasing an additional 10,049 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in Lifeway Foods by 6.8% in the second quarter. First Trust Advisors LP now owns 17,178 shares of the company’s stock valued at $423,000 after purchasing an additional 1,091 shares during the last quarter. 36.39% of the stock is currently owned by hedge funds and other institutional investors.

Lifeway Foods Company Profile

Lifeway Foods, Inc (NASDAQ: LWAY) is a Chicago-based food company specializing in probiotic-rich cultured dairy products. Established in 1986 by Michael Smolyansky, the company pioneered the introduction of kefir to the U.S. market. Under the leadership of CEO Julie Smolyansky, who succeeded her father in 2002, Lifeway has grown from a single product operation into a diversified portfolio of fermented foods and beverages aimed at promoting digestive health and wellness.

The company’s flagship product is kefir, a cultured milk beverage naturally rich in probiotics, vitamins and minerals.