NEW YORK (TheStreet) -- Krispy Kreme (KKD) stock is tumbling Tuesday after management lowered its fiscal 2015 EPS to 69 cents to 74 cents a share from prior guidance of 73 cents to 79 cents a share. According to Thomson Reuters estimates, analysts had expected an average 78 cents a share.
By early afternoon, shares had dropped 14.2% to $16.30. Trading volume of 4.6 million shares is six times its three-month daily average.
TheStreet Ratings team rates KRISPY KREME DOUGHNUTS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KRISPY KREME DOUGHNUTS INC (KKD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: KKD Ratings Report