Gapping down to levels not seen in 10 months, shares of snack food manufacturer Snyder's-Lance (LNCE 33.00, -6.92) trade about 17.3% lower following preliminary Q1 results and news of CEO Carl Lee’s retirement.
The maker of Snyder’s of Hanover pretzels announced early this morning that both Q1 earnings per share (EPS) and revenues are slated to come in behind market expectations. LNCE sees EPS for the period of $0.13-0.14 on revenues between $530-532 million.
To boot, LNCE also sees downside FY17 earning s and revenues to the tune of $1.05-1.20, from $1.32-1.42 (issued in mid-February), and $2.2-2.25 billion, from $2.25-2.29 billion (also issued in mid-February).
Management noted “difficult challenges” in Q1 that negatively impacted earnings. Sales and market share growth in the majority of categories was at the expense of higher costs, increased investment and promotional activity.
Additionally, LNCE announced the departure of CEO Carl Lee. Brian Driscoll, former President and CEO of Diamond Foods and current LNCE Director will step in as interim CEO. The company has initiated a search to find a permanent replacement for Mr. Lee.
Shares ease off the strong 2017 they have enjoyed thus far, +5.8% YTD, retreating to early-June, 2016 lows today. Shares of snack peers PepsiCo – Lay’s, Rold Gold (PEP 112.93, +0.25 +0.22%), and Kellogg – Pringles (K 72.20, +0.25 +0.35%) both trade modestly higher thus far.