Hostess Brands (TWNK) Tops Q2 EPS by 2c; Raises Outlook

Hostess Brands (NASDAQ: TWNK) reported Q2 EPS of $0.23, $0.02 better than the analyst estimate of $0.21. Revenue for the quarter came in at $291.5 million versus the consensus estimate of $272.01 million.

“We had another excellent quarter marked by double-digit net revenue growth as our investments for growth are paying off. Our top-line remains strong while lapping the Voortman pipeline fill from 2020. Our category-leading point-of-sale growth and market share gains within the breakfast, all-day snacking and cookies consumer segments are driven by robust new product innovation and strong execution as we leverage our broad-based distribution strength across channels,” commented Andy Callahan, the Company’s President and Chief Executive Officer.

He continued, “Our outstanding results and the ongoing growth momentum in both at-home and on-the-go snacking occasions makes us optimistic for the balance of the year, enabling us to raise our full year financial outlook and delever to 3x by the end of the year. With our price realization, other revenue management activities and additional productivity initiatives we are well positioned to offset rising inflation. We are confident in our ability to continue to manage second half margins while building on our solid foundation for future growth through investments in capabilities, advertising and marketing to drive shareholder value.”

GUIDANCE:

Hostess Brands sees FY2021 EPS of $0.83-$0.87, versus the consensus of $0.84. Raising full year 2021 guidance for revenue growth to 7.5% - 9.0% and adjusted EBITDA to $260 million - $268 million.

For earnings history and earnings-related data on Hostess Brands (TWNK) click here.

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