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Krispy Kreme Q2 Revenue Jumps 10.4% But Earnings Outlook Disappoints

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Shares of Krispy Kreme Doughnuts (NYSE: KKD) fell sharply in pre-market trading on Friday after the doughnut maker, late last evening, handed weaker-than-expected fiscal second quarter earnings and a disappointed earnings outlook for the full-year fiscal. Revenue, however, topped Street’s expectation.

For the latest period, the Winston-Salem NC based Company posted net income of $4.7 million compared to a profit of $4.9 million, in the year earlier quarter.

Excluding onetime items, the non-GAAP earnings stood at $9.6 million or 14 cents a share up from $8.2 million or 12 cents a share, in the same quarter of last year.

Analysts surveyed by Thomson Reuters had anticipated earnings of 16 cents a share.

Revenue climbed 10.4% to $112.7 million from $102.1 million, in the year earlier quarter, beating analysts’ expectation of $111.48 million.

For the fiscal year 2014, the Company reiterated its earnings outlook, which is short of analysts’ expectation. The Company is anticipating earnings of 59 cents to 63 cents a share while analysts’ expectation was for 64 cents a share.

the Company has been expending aggressively globally in the recent past. Earlier in July, the Company announced to have entered in an agreement with existing franchisee Lotteria Co. According to the agreement, 60 new Krispy Kreme outlets will be opened in South Korea over the course of next five years.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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