Hostess Brands: Rises after posting upbeat earnings, reaffirming organic growth target

Hostess Brands

08/05/2020 13:47

** Shares of Twinkies maker  TWNK.O  rise 6% to $12
premarket on upbeat Q1 performance
    ** TWNK posts Q1 EPS of 14 cents on revenue of $243.5 mln,
higher than expected Refinitiv est. for EPS of 13 cents on
revenue of $228.9 mln  urn:newsml:reuters.com:*:nASA00P2S
    **  Q1 adj. EBITDA rose 6.4% to $50.9 mln, driven by higher
volume and slightly accretive Voortman performance; outpaces rev
est. for the seventh consecutive qtr as demand for its core
Hostess branded products shot up due to increased store
traffic urn:newsml:reuters.com:*:nBw3g3XdYa
    ** Co suspends its 2020 outlook due to COVID-19 effects but
reaffirms its long-term objectives of organic revenue growth,
adjusted EBITDA margins
    ** Has sufficient liquidity to satisfy cash needs supported
by cash on hand, cash flow from operations and access to
revolving credit facility - TWNK
    ** 7 of 11 brokerages rate the stock "buy" or higher and 4
"hold"; their median PT is $14
    ** Up to Thursday's close, stock had fallen 22.1% this year

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))