Hostess Brands ( NASDAQ: TWNK ) posted stronger than expected earnings results on Tuesday as significant pricing actions helped buoy performance.
The Twinkie, Ding Dong, and Ho-Ho producer posted $0.25 in adjusted earnings per share on $339.5M in revenue as a 20.5% contribution from price/mix offset sales volume declines. Analysts had anticipated $0.24 in earnings per share on $331.29M in revenue. Gross profit increased 11.3% from the prior year quarter on an adjusted basis to $123.1M.
“Hostess Brands delivered another year of strong top and bottom-line results in 2022, highlighting our attractive snacking portfolio and the resiliency of our advantaged business model,” CEO Andy Callahan said. “Our track record of top-tier net revenue and earnings growth over the last three years, operational excellence and continued investments in our marketing and innovation capabilities give us the confidence to maintain our profitable growth momentum and deliver growth ahead of our long-term targets in 2023, as outlined by our initial guidance.”
Moving forward, management expects adjusted net revenue growth of 4% to 6% and adjusted EBITDA of about $315M to $325M for the full-year. A forecast for adjusted EPS between $1.08 and $1.13 also suggests upside to the $1.09 consensus.
Shares of the Lenexa, Kansas-based baked goods company trended essentially flat in Tuesday’s extended trading session.
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Hostess Brands hurdles earnings expectations, bolstered by price hikes