Mama’s Creations (NASDAQ:MAMA) Announces Earnings Results, Beats Expectations By $0.02 EPS

Mama’s Creations (NASDAQ:MAMA) released its quarterly earnings results on Monday. The company reported $0.05 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.02, FiscalAI reports. Mama’s Creations had a return on equity of 15.65% and a net margin of 3.21%.The firm had revenue of $52.77 million during the quarter, compared to analysts’ expectations of $51.63 million. During the same period last year, the firm posted $0.03 EPS.

Here are the key takeaways from Mama’s Creations’ conference call:

• Revenue, profitability, and EBITDA all grew sharply in Q1 fiscal 2027, with revenue up 49.7% to $52.8 million, net income up 66.3% to $2.1 million, and adjusted EBITDA up 71.2% to $4.9 million.
• Gross margin was pressured by startup and integration costs tied to new packaging technologies, protein form factors, and Bayshore integration, though management said the company remains on track to reach its mid-to-high 20% gross margin target as launches mature.
• The company completed ERP integration across all three facilities and also advanced WMS and launched its first TMS, which management said should improve procurement, inventory accuracy, route optimization, and operating leverage.
• New item launches and customer wins accelerated, including over a dozen new branded items at major retailers such as Walmart, Target, Food Lion, Albertsons, Weis, Fresh Market, and convenience/meal kit channels.
• Balance sheet strength and capacity remain supportive of growth, with $24.4 million in cash, $5.1 million of debt, and management saying the three-facility footprint plus recent acquisitions should support growth and selective M&A.

Mama’s Creations Price Performance

NASDAQ:MAMA opened at $13.51 on Wednesday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.71 and a current ratio of 2.17. The stock’s 50-day simple moving average is $14.62 and its 200 day simple moving average is $14.42. The company has a market cap of $549.99 million, a P/E ratio of 96.50 and a beta of 0.60. Mama’s Creations has a 52-week low of $7.75 and a 52-week high of $17.85.

Insiders Place Their Bets

In other Mama’s Creations news, CEO Adam Laurance Michaels sold 16,223 shares of the business’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $15.30, for a total transaction of $248,211.90. Following the transaction, the chief executive officer owned 695,288 shares of the company’s stock, valued at $10,637,906.40. The trade was a 2.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Mama’s Creations

Several institutional investors and hedge funds have recently made changes to their positions in MAMA. American Century Companies Inc. boosted its stake in shares of Mama’s Creations by 1.6% in the second quarter. American Century Companies Inc. now owns 89,062 shares of the company’s stock valued at $739,000 after buying an additional 1,375 shares during the period. Rhumbline Advisers boosted its stake in shares of Mama’s Creations by 4.8% in the second quarter. Rhumbline Advisers now owns 46,824 shares of the company’s stock valued at $389,000 after buying an additional 2,125 shares during the period. Invesco Ltd. boosted its stake in shares of Mama’s Creations by 10.9% in the fourth quarter. Invesco Ltd. now owns 22,299 shares of the company’s stock valued at $301,000 after buying an additional 2,183 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Mama’s Creations by 13.0% in the third quarter. Alliancebernstein L.P. now owns 21,750 shares of the company’s stock valued at $229,000 after buying an additional 2,500 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Mama’s Creations by 14.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 20,692 shares of the company’s stock valued at $280,000 after buying an additional 2,646 shares during the period. Institutional investors and hedge funds own 45.18% of the company’s stock.

More Mama’s Creations News

Here are the key news stories impacting Mama’s Creations this week:

• Positive Sentiment: First-quarter revenue rose 50% year over year to $52.8 million, highlighting strong demand and continued expansion in distribution and products. Mama’s Creations Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Adjusted EBITDA increased 71% to $4.9 million and net income climbed 66% to $2.1 million, suggesting improving profitability as the business scales. Mama’s Creations Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: EPS came in at $0.05 versus the $0.03 consensus estimate, and revenue also beat forecasts, reinforcing the earnings-beat narrative. Mama’s Creations Q1 Earnings Beat Estimates, Sales Increase Y/Y
• Neutral Sentiment: Earnings-call summaries and transcripts add more detail on the quarter, but do not appear to introduce a new major catalyst beyond the reported results. Mama’s Creations, Inc. Q1 2027 Earnings Call Summary
• Neutral Sentiment: Short-interest data showed 0 shares reported, which does not indicate meaningful bearish positioning, but the data point itself is unlikely to move the stock.

Wall Street Analysts Forecast Growth

MAMA has been the subject of a number of recent analyst reports. Zacks Research cut Mama’s Creations from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Weiss Ratings cut Mama’s Creations from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday. DA Davidson reaffirmed a “buy” rating and set a $25.00 price target on shares of Mama’s Creations in a report on Wednesday, May 20th. Finally, Wall Street Zen cut Mama’s Creations from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $18.80.

Mama’s Creations Company Profile

Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.