Investors hammered Annie’s (BNNY) stock after the company issued lower-than-expected quarterly earnings and a major bank trimmed its outlook for the maker of organic foods. Annie’s stock sank more than 8% in Tuesday morning trading.
Annie’s stock was battered after it posted EPS of 17 cents for the last quarter. That narrowly missed the earnings of 18 cents per share that Wall Street was looking for, according to Ticker Report.
Additionally, Annie’s cut its outlook for the full fiscal year from a prior forecast of between 97 cents and $1.01 a share to between 92 cents and 93 cents a share. That disappointed analysts who had expected full-year earnings of 97 cents a share, the Associated Press noted.
Adding to Annie’s stock slide, a Credit Suisse (CS) analyst lowered his rating for Annie’s stock from “Outperform” to “Neutral.” The analyst cited “execution errors over the past two years” as the reason for the downgrade, warning that the errors dampened Annie’s prospects. The analyst also trimmed his price target for Annie’s stock from $54 a share to $36 a share, Benzinga notes.
Early last year, Annie’s issued a voluntary recall for some of its frozen pizzas after metal fragments were discovered in some ingredients.
Annie’s stock had gained more than 14% over the past year. Annie’s stock closed at $41.83 a share on Monday.