NEW YORK (TheStreet) -- Shares of Boulder Brands Inc. (BDBD) are slumping by 22.02% to $6.93 on heavy volume in late afternoon trading on Wednesday, after the consumer packaged foods company announced CEO Stephen Hughes has resigned effective immediately and guided below expectations for the 2015 second quarter.
Boulder Brands has placed COO James Leighton in the position of interim CEO as they search for a replacement for Hughes.
"The board believes now is the time for new leadership at Boulder Brands. This change, along with the evolving dynamics of our industry, gives us confidence that we are well-positioned to leverage customer and consumer desires for authentic and scalable natural brands to deliver sustainable results and generate meaningful value creation," Boulder said in a statement.
Additionally, the company issued guidance for its 2015 second quarter. On a non-GAAP basis Boulder is expecting flat earnings to an income of 2 cents per share. Analysts have forecast for earnings of 4 cents per share.
Boulder's sales guidance for the 2015 second quarter is in a range between $122 million and $124 million. Analysts are anticipating second quarter sales of $135.98 million.
Insight From TheStreet Research Team:
TheStreet's David Peltier, Portfolio manager of Stocks Under $10 commented on Boulder Brands in a post today on RealMoney.com. Here is what Peltier had to say:
Boulder Brands had maintained its annual guidance as recently as May 7, so what changed and are shares worth buying down here since we have a sizable cash position in the Stocks Under $10 portfolio? Is this a potential turnaround story, or not?