Why Blackhawk Network (HAWK) Is Plummeting Today

NEW YORK (TheStreet) -- Blackhawk Network  (HAWK) shares were plummeting 22.45% to $21.77 on Thursday after the company reported fourth-quarter results and guidance that fell short of analysts' expectations. Safeway  (SWY) also announced that it would distribute the remaining stake in Blackhawk that it owns.

Blackhawk reported earnings per share of 81 cents and revenue of $521.18 million, short of the consensus estimate of 84 cents and $539.15 million, respectively. Blackhawk also issued EPS guidance for the fiscal year 2014 of $1.19 to $1.24, which did not reach the consensus estimate of $1.40.

Furthermore, Safeway, which spun off Blackhawk into a separate publicly-traded company, announced Wednesday that it would distribute the 37.8 million shares of Blackhawk that it owns to Safeway stockholders. Safeway's stake accounts for approximately 72.2% of the outstanding Blackhawk shares.

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