Amplify Snack Brands (BETR) sort of rules the world of BFY and RTE. But it's kind of falling down on the old EPS.
BFY is "better for you." RTE equals "ready to eat." Amplify, whose best known product is Skinny Pop popcorn, has the products that fit nicely with popular tastes for healthier, less-processed products. What it hasn't got - at least according to its latest earnings report - is a financial profile that matches what investors want.
Amplify posted third quarter earnings of 12 cents a share late Monday, missing analysts' projections of 14 cents a share. The stock paid a heavy price for the shortfall, plunging about 25% in Tuesday's trading session to $10.16, the worst performing stock traded on the New York Stock Exchange today. During trading, it sank into single-digit territory for the first time since February.
Amplify is trading at about a 40% discount to its IPO price of $18 a share in August 2015. The collapse in the share price is presumably taking a toll on its financial sponsor, TA Associates, which purchased the company in 2014, and still holds 58% of the common shares, according to a proxy statement the company filed this past spring.
Amplify's growing pains stem from trying to move beyond its roots as a single product phenomenon to a multi product global food company. In the just completed third quarter, it closed on its acquisition of the U.K. snacks maker Tyrrell, which it bought for $391 million, paid for with a $650 million credit facility it raised in August of this year.