SunOpta Shares Rally After Earnings News

August 3, 2006

Shares of Food Producer SunOpta Rally Following 2nd-Quarter Earnings Report

NEW YORK (AP) — Shares of SunOpta Inc. (Nasdaq: SKTL) (TSX: SOY) rallied on Thursday, a day after the company reported second-quarter earnings that narrowly missed expectations, but impressed analysts with its newly booked business and better-than-expected performance from its core food segment.

Shares of SunOpta, a Canadian specialty foods producer and distributor, rose 56 cents, or 6.4 percent, to $9.31 in afternoon trading on the Nasdaq. On Wednesday, SunOpta reported that its second-quarter profit rose 31 percent to $4.3 million, or 8 cents per share, from $3.3 million, or 6 cents per share during the same period a year ago. Revenue grew 51 percent to $155.7 million from $102.9 million

Analysts had expected the company to earn 9 cents per share.

Scott Van Winkle, an analyst with Canaccord Adams, was impressed with revenue gains in the company’s core foods business — where SunOpta reported a rebound in the sales of oat fiber and soy fiber — and growth in organic private-label fruit and tomato-based products. They company also reported revenue and cost improvements in its Canadian distribution operations.

Van Winkle, who rates the company’s stock “Buy,” maintained his earnings estimates of 28 cents per share for 2006 and 36 cents per share for 2006 and 2007, respectively.

Source: Yahoo


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