Key Takeaways
- Utz lowered its organic net sales growth projection to between 2% and 2.5%.
- The chip and pretzel company said it expects consumers to be more value-conscious in the back half of 2024, creating a more competitive promotional environment.
- Utz’s adjusted EPS projection remained unchanged, and near the Street’s consensus.
Utz Brands (UTZ) shares fell after the snack manufacturer dropped its full-year guidance.
The company, known for its namesake chips along with a range of other chip and pretzel brands, said it expects full-year organic net sales to grow 2% to 2.5% year-over-year, down from a previous estimate of 3%. Utz attributed the adjustment to “a more competitive promotional environment.”
Utz reiterated its adjusted earnings per share growth projection of 28% to 32%, which at the midpoint reflects levels near Visible Alpha’s consensus estimate. The guidance update came ahead of a presentation at the 2024 Barclays Global Consumer Staples Conference on Thursday.
“I do think that pricing is something that consumers are being more thoughtful about,” Utz CEO Howard Friedman said during his conference appearance, a transcript of which was made available by Alpha-Sense. “We definitely see value-seeking behavior.”
Shares of the company dipped more than 1% Thursday. They’re up roughly 9% this year.