Shares of Berkeley, Calif.-based Annie's (UNKNOWN:BNNY.DL) dropped 3.7% in after-hours trading Thursday, following a second-quarter earnings report that fell short of analyst expectations on both sales and earnings.

Annie's reported earning $0.12 per diluted share on $39 million in revenues. This represented flat year-over-year profits at the company, and a 14% increase in sales. However, analysts had been expecting Annie's to report $0.14 per share, and generate $40 million in revenues. When the company failed to do so, investors began selling the shares.

Q2's disappointment notwithstanding, Annie's CEO John Foraker noted that the company's "products continue to perform exceptionally well in the marketplace, as we benefit from the strength of the Annie's brand, the quality of our products, and our efforts to expand and improve distribution." Going forward, Annie's continues to believe it can achieve 18% to 20% adjusted net sales growth this year, and grow adjusted earnings per share by as much as 26%. Company guidance of $0.97 to $1.01 in adjusted earnings per share remains unchanged.