Why Snyder’s-Lance Inc (LNCE) Stock Is Tanking Today

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Snyder’s-Lance Inc (NASDAQ:LNCE) stock was down on Monday following the release of its preliminary earnings for its first fiscal quarter of 2017.

Why Snyder's-Lance Inc (LNCE) Stock Is Tanking Today

Snyder’s-Lance Inc says that it expects to report revenue between $530 million and $532 million during its first fiscal quarter of the year. It says this will be a 18% to 19% increase over the same time last year. However, it will come in below Wall Street’s revenue estimate of $551.17 million for the quarter.

Earnings per share expected by Snyder’s-Lance Inc in its first quarter of 2017 range from 13 cents to 14 cents. This comes in below analysts earnings per share estimate of 27 cents for LNCE’s fiscal first quarter of 2017.

“Increased investments in promotional and marketing spending combined with gross margin pressure had an adverse effect on our performance and more than offset the benefits of synergy delivery related to the Diamond Foods transaction,” Alex Pease, Executive Vice President and CFO of Snyder’s-Lance Inc, said in a statement.

Snyder’s-Lance Inc is also revising its guidance for the full year of 2017. It now expects revenue to range from  $2.20 billion and $2.25 billion and earnings per share to be between $1.05 and $1.20. Wall Street is expecting revenue of $2.27 billion and earnings per share of $1.38 for the year.

Snyder’s-Lance Inc has also announced that President and CEO Carl Lee, Jr. has retired after 12 years of service. Brian Driscoll, the former President and CEO of Diamond Foods, is taking over as interim CEO.

Snyder’s-Lance Inc’s Board of Directors have also announced that they will be conducting a search to find a permanent replacement for the former CEO. The Board says that Driscoll is already a strong candidate to become the next CEO of the company.

LNCE stock was down 18% as of Monday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/snyders-lance-inc-lnce/.

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