Hostess reported first-quarter adjusted net income of $20.3 million, or 14 cents a share, vs. $20.5 million, or 14 cents a share, a year earlier. Analysts polled by FactSet had been expecting earnings of 13 cents a share. Sales rose to $222.7 million compared with $208.7 million in the same period a year ago.
Higher prices for the company's sweet baked goods and in-store bakery products helped offset slight increases in transportation and other costs, resulting in stronger net sales, the company said.
Revenue in sweet baked goods came in at $212.9 million vs. $199.3 million a year ago. In-store bakery segment revenue was $9.9 million vs. $9.5 million in the year-earlier quarter.
Meantime, Hostess said it expects its sweet run to continue through the remainder of 2019, "driven by innovation from Hostess-branded breakfast and other core products as well as expanded distribution and improved merchandising execution over the course of the year."
Hostess makes a variety of classic pre-packaged baked sweets, including Donettes, Ding Dongs, Zingers, danishes, honeybuns and coffee cakes, in addition to its iconic Twinkies and CupCakes.
Shares of Hostess gained 3.7% to $13.46 in trading on the Nasdaq Stock Market.