FitLife Brands (NASDAQ:FTLF) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

FitLife Brands (NASDAQ:FTLF) issued its quarterly earnings data on Thursday. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.03, FiscalAI reports. The firm had revenue of $25.33 million for the quarter. FitLife Brands had a net margin of 6.64% and a return on equity of 18.66%.

Here are the key takeaways from FitLife Brands’ conference call:

• Revenue rose 59% year over year to $25.3 million, driven primarily by the Irwin acquisition, while contribution increased 42% and adjusted EBITDA was $3.3 million.
• Gross margin declined to 37.6% from 43.1% a year ago because Irwin carries a lower margin profile, though management said margins improved sequentially and should continue to rise as supply chain issues are addressed.
• Legacy FitLife remains under pressure, with revenue down 22% year over year due to weaker MRC online sales and lower GNC wholesale revenue, partially offsetting gains from Irwin.
• Irwin’s Amazon business continues to scale, reaching about $800,000 in March, roughly $900,000 in April, and showing continued sequential improvement, with more growth expected as out-of-stocks are resolved and additional SKUs go live.
• The company is using cash to delever, paying down $1.5 million of term debt and $1.4 million of revolver debt in the quarter, and it also announced a new MusclePharm rollout in several hundred Kroger stores beginning in June.

FitLife Brands Stock Performance

FTLF stock traded up $0.26 during midday trading on Friday, hitting $10.50. 18,042 shares of the company traded hands, compared to its average volume of 33,915. FitLife Brands has a twelve month low of $8.67 and a twelve month high of $20.98. The company has a quick ratio of 0.54, a current ratio of 1.53 and a debt-to-equity ratio of 0.88. The business has a 50 day simple moving average of $11.27 and a 200-day simple moving average of $14.82. The stock has a market capitalization of $98.60 million, a price-to-earnings ratio of 17.38 and a beta of -0.01.

Insider Activity at FitLife Brands

In related news, Director Grant Robert Dawson purchased 3,000 shares of the stock in a transaction on Friday, April 10th. The shares were bought at an average price of $9.98 per share, for a total transaction of $29,940.00. Following the completion of the acquisition, the director directly owned 158,000 shares in the company, valued at approximately $1,576,840. This trade represents a 1.94% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Matthew Lingenbrink acquired 3,000 shares of the stock in a transaction dated Friday, April 10th. The stock was bought at an average price of $9.76 per share, for a total transaction of $29,280.00. Following the purchase, the director owned 8,800 shares of the company’s stock, valued at $85,888. The trade was a 51.72% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 61.40% of the company’s stock.

Institutional Investors Weigh In On FitLife Brands

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rhumbline Advisers grew its stake in shares of FitLife Brands by 12.3% in the third quarter. Rhumbline Advisers now owns 5,870 shares of the company’s stock worth $117,000 after acquiring an additional 642 shares during the last quarter. New York State Common Retirement Fund acquired a new stake in shares of FitLife Brands in the second quarter worth $103,000. JPMorgan Chase & Co. grew its stake in shares of FitLife Brands by 107.0% in the third quarter. JPMorgan Chase & Co. now owns 3,819 shares of the company’s stock worth $76,000 after acquiring an additional 1,974 shares during the last quarter. Wells Fargo & Company MN grew its stake in shares of FitLife Brands by 78.0% in the fourth quarter. Wells Fargo & Company MN now owns 4,271 shares of the company’s stock worth $69,000 after acquiring an additional 1,871 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of FitLife Brands in the fourth quarter worth $61,000. Institutional investors and hedge funds own 2.32% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have commented on FTLF shares. Lake Street Capital lowered their price target on FitLife Brands from $21.00 to $18.00 and set a “buy” rating on the stock in a report on Thursday, April 2nd. Zacks Research downgraded FitLife Brands from a “hold” rating to a “strong sell” rating in a report on Tuesday, April 7th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $21.50.

About FitLife Brands

FitLife Brands, Inc provides nutritional supplements for health-conscious consumers in the United States and internationally. The company provides weight loss, sports nutrition, and general health products; sports nutrition products; weight loss and sports nutrition products; sports nutrition and general wellness formulations with an emphasis on natural, vegan, and organic ingredients; and male health and weight loss products, as well as other diet, health, and sports nutrition supplements and related products; and value-oriented sports nutrition and weight loss products.