2023-05-09 16:53:59 ET
Hostess Brands ( NASDAQ: TWNK ) shares were boosted after the bell by a Q1 earnings result that proved just sweet enough to clear the bar set by the Street.
The maker of Ho Hos, Ding Dongs, and Sno Balls notched $0.28 in earnings per share for the first quarter, clearing the consensus estimate by one cent. Meanwhile, a 4% jump in revenue from Q1 2022 topped analyst expectations by $6.96M.
“The strength of Hostess Brands’ business model and power of our brands enabled us to deliver another quarter of revenue and profit growth, while lapping very strong year-ago comparisons. As we continue to build a premier snacking company, Hostess Brands is focused on growing snacking occasions, and we believe that we have the right consumer insights, the right innovation pipeline and the right brand-building strategy in place to deliver long-term sustainable growth and shareholder value,” CEO Andy Callahan said. “We are maintaining its full-year net revenue, adjusted EBITDA, and adjusted EPS guidance, delivering above-algorithm profitable growth in 2023.”
That guidance includes the expectation of net revenue growth in the range of 4% to 6%, adjusted EBITDA in a range of $315M to $325M, and adjusted EPS between $1.08 and $1.13. Analysts had projected $1.10 in earnings per share on 5.23% in revenue growth.
Shares of Hostess Brands ( TWNK ) rose 1.98% shortly after the earnings announcement .
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Hostess stock heads higher on narrow earnings beat