SunOpta (STKL) Stock Slumping Today Following Earnings Results
NEW YORK (TheStreet) -- Shares of SunOpta Inc. (STKL) - Get Report are down by 12.01% to $10.07 on very heavy volume in mid-morning trading on Tuesday, after the company reported earnings results for the 2014 fourth quarter, which came in below what analysts were expecting for the period.
For the most recent quarter the Canada-based natural, organic, and specialty food products company said its adjusted earnings were 6 cents per diluted share versus the 3 cents per diluted share reported for the 2013 fourth quarter.
Analysts polled by Zacks Investment Research had forecast for adjusted earnings of 10 cents per share.
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SunOpta's revenue for the latest quarter grew by 5.5% to $284.8 million but missed the $300.7 million analysts had predicted.
Additionally, SunOpta announced that it has signed an agreement to acquire Citrusource LLC., a leading supplier of premium not-from-concentrate private label organic and conventional orange juice and citrus products in the U.S.
SunOpta said the business was acquired for a combination of cash on closing of $13.3 million, plus future payments based on specific performance targets.
"This acquisition aligns with our core integrated two-touch strategy and leverages our vertically integrated operations as well as our consumer products strategy to grow our healthy beverages portfolio," SunOpta CEO Steve Bromley said in a statement.
Separately, TheStreet Ratings team rates SUNOPTA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNOPTA INC (STKL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: STKL Ratings Report
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