What happened
Shares of Amplify Snack Brands (BETR +0.00%), a snack-food company focused on developing and marketing "better for you" snacks, fell 15% as of 11:20 a.m. EST after the company's third-quarter results failed to live up to expectations.
So what
Amplify, most known for its popcorn and tortilla chip snacks, posted revenue of $94.9 million during the third quarter, which fell modestly below analysts' estimates calling for $98.7 million. That weaker-than-expected result carried through to the bottom line as well, with adjusted earnings per share checking in at $0.07, below analysts' estimates calling for $0.09 per share. While the results fell short of Wall Street expectations, the silver lining for investors is that growth was still visible: Organic net sales jumped 9.4% over the prior year.
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"During the quarter, we continued to drive strong growth and profitability and, while our quarterly results did not meet our expectations, we made good progress on our strategic initiatives across our business and believe we are well positioned for the future," said Tom Ennis, Amplify's chief executive officer, in a press release.
Now what
Today's 15% decline only adds to the company's stock price woes: The share price is down 42% in 2017 and 64% over the past 12 months. It's true that Americans are trending toward healthier eats, but it's equally true that for Amplify's stock to rebound, management needs to innovate snack foods beyond popcorn and tortilla chips to drive better financial results.
