money Hostess posts strong earnings results, withdraws guidance
Yahoo Finance’s Brian Sozzi and Alexis Christoforous break down the market action for Hostess.
Video Transcript
BRIAN SOZZI: Welcome back to "Yahoo Finance Live." let's take a look at one of the trending tickers on yahoofinance.com. We're focused on Twinkie-maker Hostess today after the company posted a strong first quarter.
Going through some of these numbers, no surprise here. A lot of people were stocking up [? on ?] their pantries last-- the past couple of months. Alexis, sweet baked sales for Hostess up 6.3%. That's a whole lot of Twinkies.
ALEXIS CHRISTOFOROUS: It is, and I think it's a window into our behavior during this pandemic as we're all stuck at home and just what it is people are buying up. Apparently they're buying a lot of Hostess snacks because the company was able to post profit that beat estimates by a penny a share, coming in at $0.14 a share. Revenue, $243 and 1/2 million versus the consensus estimate of $228 million, so beating on both the top and bottom lines.
No surprise, though, that Hostess had to pull its full-year guidance. It did issue full-year guidance back in February which did not include the impact of COVID-19. It said it's unable to do that right now. But the company does believe-- Hostess does believe it has sufficient liquidity to satisfy all of its cash needs. It's going to be able to pay its bills. But again, one more company you can add to the list, Brian, that just can't see out beyond Q2 at this point.
BRIAN SOZZI: Well said, Alexis. I'll add this too. I think why you're seeing the stock up nicely this morning, their grocery business grew very well. And you look at their earnings presentation they put out on their site. They've had a lot of market-share gains. Who they're gaining market share from, unclear, but Twinkie is one of the big winners from this pandemic. Make no mistake about it.
