Why Hostess Brands, Inc. Stock Plunged Today

Shares of Hostess Brands Inc. (NASDAQ: TWNK) fell 9.1% on Wednesday, after the sweet baked goods specialist announced mixed second-quarter 2017 results and reduced its full-year earnings outlook.

That's not to say Hostess' results looked bad on the surface. Quarterly revenue climbed 5.6% year over year to $203.2 million, primarily driven by new product initiatives, including Chocolate Cake Twinkies, White Fudge Ding Dongs, and Golden Cupcakes. On the bottom line, net income rose 28.8% over the same period to $28.2 million, and net earnings per diluted share climbed 20% to $0.18. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 7.7% to $63.2 million.

By comparison, analysts' consensus estimates predicted Hostess would deliver the same earnings of $0.18 per share, but on slightly higher revenue of $205.2 million.

Source: Fool.com