Utz Brands, Inc. (NYSE: UTZ) shares plummeted 5.81% in Thursday's trading session following the release of its second-quarter earnings report, which painted a mixed picture of the company's performance and outlook. Despite beating sales estimates, the snack maker's earnings miss and lowered guidance for 2025 left investors with a bitter taste.

The company reported Q2 sales of $366.7 million, surpassing analyst expectations of $362.1 million and representing a 2.9% increase year-over-year. However, adjusted earnings per share came in at $0.17, falling short of the $0.18 consensus estimate and marking a 10.5% decline from the previous year. More concerning for investors was the significant 60.2% drop in net income to $10.1 million, highlighting potential profitability challenges.

Adding to the negative sentiment, Utz Brands lowered its 2025 Adjusted EPS growth guidance to 7% to 10%, down from previous projections. The company cited higher interest expenses and increased depreciation & amortization costs linked to accelerated capital expenditures as reasons for the reduced outlook. Furthermore, Utz announced the closure of its Grand Rapids facility as part of its ongoing supply chain transformation, a move that may have raised concerns about short-term disruptions. These factors combined to trigger a sell-off, as investors reassessed the company's near-term growth prospects and profitability.