John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS)

JBSS shares have been on a tear from October 22, 2009 after it reported strong fiscal 2009 first quarter bottom line results.

"As a result of lower commodity costs for some of the key nuts that we purchase and improved manufacturing efficiencies throughout the whole Company, the first quarter of fiscal 2010 was one of our best first quarters in respect to profitability and cash flow since we became a public company in 1991,” stated Jeffrey T. Sanfilippo, Chairman and Chief Executive Officer." As we noted earlier, commodity costs generally have been favorable and have contributed to the improvement in our gross profit margin for the last two quarters. We anticipate that these conditions will continue into the second quarter of fiscal 2010."

The JBSS outlook beyond the second quarter is a bit unclear:

"In the second half of fiscal 2010, we expect prices for certain commodities, such as walnuts, cashews and other imported nuts, to increase significantly. These cost increases will likely put some pressure on our gross profit margin in the second half of the fiscal 2010, however, the impact of these cost increases will be offset in part by lower pecan acquisition costs,” Mr. Sanfilippo concluded."

Also, it has been sometime since the Company has experienced significant revenue growth.

Still we are hoping that investors will continue to bid up shares of JBSS in anticipation of a strong second quarter, especially since the stock is selling below its book value per share of $21.22.