said it will miss second-quarter estimates and the company's own growth targets on slower-than-expected sales and union election costs.
The fresh pasta maker said its second-quarter earnings will be 5 cents or 6 cents a share, below the consensus estimates of 10 cents, although a tax accrual of 12% will add 2 or 3 cents to total EPS. The company also said it will probably miss its 20% quarterly sales growth target over second-quarter 2001 due to a slow start to the quarter. Monterey now expects growth of 10% to 15%.
In a press release, company CEO R. Lance Hewitt said, "As far as the balance of the year, I feel good about our sales prospects and achieving the 20% growth target based on the strength of our new products, as well as the potential of added distribution."
Monterey also expects to incur a 1 cent to 2 cents a share charge in the second quarter to account for attorneys' fees, consultants' fees, training costs, and other costs of holding an election for employee unionization that was ultimately rejected by hourly employees.
Shares of Monterey Pasta closed at $9.85 before the news on Friday.