Multi-Color (LABL) management’s credibility is pretty much in the same shape as a beer bottle label after a nervous first date, as management once again missed expectations and lowered guidance on ongoing execution shortfalls. While the magnitude of the shortfalls was clearly a surprise relative to sell-side expectations (and mine), the root causes are all too familiar to long-suffering shareholders in this now-poorly-run company.
Management’s announcement that it is pursuing strategic options, including a potential sale of the company, confirms the rumor, but doesn’t really add much of a backstop. I don’t really