Marzetti's stock plummeted 5.12% during intraday trading following the release of its fiscal third-quarter results, which fell short of analyst expectations on both the top and bottom lines.
The specialty food maker reported earnings of $1.35 per diluted share, missing the FactSet consensus estimate of $1.57. Revenue for the quarter declined 1% year-over-year to $453.4 million, also below the analyst expectation of approximately $463.6 million. The company attributed the retail segment sales decline of 3.2% to category softness and reduced sales into the club channel, offsetting strength in its frozen bread brands.
Despite reporting a record gross profit for the quarter, higher selling, general and administrative expenses, including acquisition-related costs, contributed to the earnings shortfall. The disappointing results prompted a significant sell-off in the stock as investors reacted to the weaker-than-expected performance.
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