Charlotte-based snack maker Snyder’s-Lance reported third-quarter earnings Wednesday that were up from last year but that fell below Wall Street expectations as sales softened.
For the quarter that ended Oct. 3, the snack manufacturer reported earnings of $15.7 million, up from $13.7 million a year ago. On an adjusted basis, earnings were 26 cents a share, up from 23 cents from the third quarter of 2014 but below the 34-cent consensus estimate of analysts surveyed by Bloomberg.
Sales for the quarter totaled $416.8 million, up 1.8 percent from a year ago but below the Wall Street consensus estimate of $435.3 million.
A one-time cost weighing on third-quarter results, the company said, was $2.9 million associated with litigation settlement.
In a call with analysts Wednesday, Chief Executive Officer Carl Lee cited retailer consolidations, a softer back-to-school selling season and major challenges in its mass merchandiser channel as reasons for the earnings slump for the third quarter.
“We see our revenue challenges as short term. We’ve been able to address most of them and will continue to address the others,” Lee said.
Also on Wednesday, the company announced a plan to boost its “better-for-you” portfolio with the $1.91 billion acquisition of a California-based healthy snack maker Diamond Foods. The deal is expected to close in early 2016.