Expect Hostess Brands, Inc. (NASDAQ:TWNK) shares to fall early Thursday as the company reported lower-than-expected quarterly results Wednesday.
After the bell, the Twinkie maker posted its third-quarter earnings, which came in at $16.1 million, beating the $13.8 million that analysts had called for, but declining considerably from the $26.3 million earned in the third quarter four years ago.
On an adjusted basis, Hostess Brands posted earnings of 14 cents per share, below the 16 cents it garnered a year ago. Wall Street’s consensus estimate was for an adjusted profit of 15 cents per share.
The sweet baked goods manufacturer’s revenue declined 2% year-over-year to $192.3 million. Analysts polled by FactSet had forecasted revenue of $199.1 million on a consensus basis.
One of Hostess Brands’ weakest segments of the period was its larger sweet baked goods, which comprise a large portion of the company’s offerings. In this department, the company brought in $173.6 million, a 0.5% dip year-over-year.
Its smaller baked goods segment — including bread, buns and in-store bakery — plummeted 13.8% compared to the year-ago mark to $18.7 million as Deep Fried Twinkies are not as popular as they once were.
“We had solid underlying growth across our major brands in the third quarter, along with significant revenue contributions from 2017 innovation,” said Bill Toler, President and CEO of Hostess.
The company now expects to rake in $775 million to $781 million for the fiscal year 2017, compared to its previous outlook of $781 million.
TWNK shares slipped 2.1% after hours.