Tootsie Roll Posts 31c Q3 EPS as Cocoa Costs Weigh on Margins
TR is trading near its 52-week low of $33.432 (8.9% above the low).
Summary
Tootsie Roll reported third-quarter EPS of 31 cents and sales of $227.2M, the first hard numbers on the quarter. The bar to clear is low: Q2 net earnings fell 22% year-over-year to $13.3 million as higher cocoa costs and operating expenses squeezed margins, and cash reserves had halved to $62 million. The 31-cent figure alone doesn't tell you whether the margin pressure eased or worsened — no net income or year-over-year comparison is in the headline. The company said cocoa commodities markets have retreated from their extraordinarily high price levels. The September 1 acquisition of The Klass Company's Winis confectionery brand through the Mexican subsidiary adds a new revenue line but also integration cost. Watch the full release for gross margin to see if the Q2 deterioration continued.
At the time of this announcement, TR was trading at $36.40 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $33.43 to $45.06. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.