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Snack company Utz Brands (UTZ) -6% on mixed Q2 report
Utz Brands (UTZ) shares fell on Thursday after the snack company said that supply chain problems hit Q2 profits as it failed to match the Wall Street consensus.
Snack company Utz Brands (UTZ) slipped 6% in New York on Thursday after Q2 profits fell just short of expectations and revenue retreated 4% year-over-year.
Currently celebrating its centenary year after being founded back in 1921, Utz had hoped for a blowout quarter, but “challenging industry-wide supply chain dynamics” crimped bottom line.
While there was a profit of $0.13 per share for the latest three-month period, that figure came in a single cent below the Wall Street consensus.
Revenue also declined from Q2 2020, but the $299.2m figure was good enough to beat the $289.6m forecast.
Looking ahead to the rest of the year, Utz has guided for a $0.55-$0.60 adjusted profit, which is 15 cents lower than the previous range and shy of the $0.67 consensus.
In a statement, Utz said that it expects consumer demand to “remain strong” during the next six months and for sales growth to “accelerate”.
However, it noted ongoing supply chain issues that have resulted in higher costs for labour, transportation and commodities.
These increases were first evident in Q1, have had a greater negative impact than anticipated, and will continue through the remainder of the year.
Utz has been trying to mitigate the issues with strategies centred on cost-efficiency, productivity and pricing.
The mixed report was met with a mooted reaction from investors on Thursday as UTZ traded down in New York.
After falling early in the day, UTZ had slumped 5.90% to $19.60 by around midday.
Real estate company Opendoor Technologies (OPEN) went in the opposite direction, soaring 17.21% after an impressive Q2 that saw $1.2bn in revenue generated.
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