The company said it expects EPS of 92 cents to 93 cents for the fiscal year, a decrease from its previous forecast of 97 cents to $1.01 a share. Analysts expect fiscal 2014 earnings of 97 cents a share.
Annie's uses organic wheat to make its pasta and some of its other products, and CEO John Foraker noted in the company's report that the organic wheat supply would decrease in the fourth quarter.
"We expect solid adjusted earnings per share growth in the fourth quarter, despite tight supply conditions in the organic wheat market, the timing of certain productivity projects and a later Easter holiday this year," Foraker said.
The company reported a 21.7% increase in adjusted net sales to $46.1 million in the third quarter; adjusted EPS in the quarter rose 7.6% to 17 cents a share.
TheStreet Ratings team rates ANNIE'S INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation:
"We rate ANNIE'S INC (BNNY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."