Annie's slides on earnings
An analyst covering the company lowers his rating, citing 'execution errors' over the years.
By Christopher Freeburn
Investors hammered Annie's (BNNY) on Tuesday after the company issued lower-than-expected quarterly earnings and an analyst trimmed his outlook for the maker of organic foods.
Annie's was battered after it posted earnings of 17 cents per share for the last quarter. That narrowly missed the earnings of 18 cents per share that Wall Street was looking for. Revenues of $46.2 million did beat the Street, however, which was looking for sales of $45.9 million.
Additionally, Annie's cut its outlook for the full fiscal year from a prior forecast of between 97 cents and $1.01 per share to between 92 cents and 93 cents a share, also falling short of analysts' expectations for 97 cents per share.
Annie's slide also was exacerbated when a Credit Suisse 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 the stock from $54 a share to $36.
Annie's shares fell nearly 9 percent Tuesday to close at $38.21. The stock had been down more than 10 percent earlier in the day, a decline of more than 25 percent since its October highs around $51 per share.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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