NEW YORK (TheStreet) -- Wall Street was in a foul mood following the release of Krispy Kreme's (KKD) second quarter earnings after the market closed on Friday. Shares fell 15% on eight times normal average volume Friday after the company reported earnings per share of 14 cents, 2 cents below consensus estimates.It didn't seem to matter that revenue, which was up 10.4% from the same quarter last year to $112.7 million, came in better than the $111.4 million consensus. As a former Bloomberg colleague was fond of saying, "when you miss on earnings, Wall Street takes you out back and shoots you." Indeed, the punishment was severe for what I consider to be the maker of the world's best cream doughnut, but I'm not all that surprised. Krispy Kreme is a classic rags to riches, back to rages story that may again be in the early stage of re-entering the riches phase. Most investors gave up on this name years ago when the company nearly imploded, and for several years, Krispy Kreme was all but forgotten as a publicly traded company. Its resurgence in the past few years was first met with great skepticism. However, as the company demonstrated a renewed ability to expand, began putting up good solid store sales growth numbers and a growing bottom line, Krispy Kreme has been re-embraced by investors, primarily over the past year. When that happens, expectations grow, and when they are not met, investors, particularly those with short-term focus, become sellers. Friday's trading action was demonstrative of this, but this really was not a bad quarter. Same store sales, sales at stores open more than one year, rose 10% for the quarter, and that represented the 19th consecutive quarter of same store sales growth. Company management also reaffirmed earnings guidance for the year, suggesting that it expects adjusted net income will be in the $42 million to $45 million range, with earnings per share in the 59 cents to 63 cents range. The balance sheet remains strong as the company ended the quarter with $60 million in cash and just $1 million in debt. The company also announced a $50 million stock buyback program.
Where we go from here remains to be seen but I would not be surprised to see the shares continuing to be somewhat volatile in the near-term. In my view, Krispy Kreme's resurging growth story appears to remain intact. I began buying shares when the company just began turning around and appeared to be a value play. By now, in similar cases, I probably would have closed my position, and walked away. However, I believe there is still great value in the brand name and wonder what shares will be worth in five years, as the company continues global expansion. At the time of publication the author was long KKD. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.