Shares in Minnesota food maker International Multifoods Corporation
But while the IM's dough looks to be rising, it's more fluff than stuff. There are a few after-tax charges both last year and this year that bear scrutiny. Last year, IMC took charges totaling $0.26 per share. There was a $0.03 charge this quarter. If you adjust for these, IMC's recent EPS from operations actually fell to $0.76 from $0.81.
More troubling are the other negative signs on the latest sheets. The problems for International Multifoods are as simple as a big drop in sales. Net sales fell 12%. Much of the loss was blamed on successful promotions by rivals. That's definitely not the kind of excuse that should fly well with shareholders.
When we last checked-in with International Multifoods, it had been smacked by investors after reducing its Q3 guidance.
It can't be easy for International Multifoods, as big customers like Wal-Mart
None of this sends IM down for the count. Its decent cash flow and heavyweight consumer brands mean it will remain a player. But with Multifoods' revenues sagging, value-minded investors may want to wait for a better price before joining this bake sale.
Hankering to talk flapjacks? Join the discussion on Fools IMC board.
Seth Jayson spent a summer at Pillsbury, sending trainloads of ice cream ingredients to the company's Haagen-Dazs plant in France. But he has no position in any company mentioned here. Reach him at FoolishSeth@sethj.com.