Utz Brands, Inc. (UTZ) saw its stock price plummet by 5.19% in pre-market trading on Thursday, despite the company reporting first-quarter earnings that met or slightly exceeded analyst expectations. The significant drop in share price suggests that investors may have been looking for stronger results or more positive guidance from the snack food manufacturer.
For the first quarter of 2025, Utz Brands reported adjusted earnings per share of $0.16, slightly beating the Zacks Consensus Estimate of $0.15. The company's sales reached $352.084 million, marginally surpassing the expected $350.4 million. While these results show some improvement over the previous year, with earnings per share increasing from $0.14 in Q1 2024, they apparently failed to impress investors.
The sharp decline in Utz Brands' stock price may be attributed to several factors. First, the company's year-to-date performance has been weak, with shares already down 15.1% before this earnings report. Additionally, Utz Brands mentioned that recent tariff volatility is expected to have a modest impact on their business in 2025, which could be causing concern among investors. Despite reaffirming its full-year 2025 outlook, the market's reaction suggests that participants were hoping for more robust growth or improved guidance in the face of ongoing economic challenges.
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