John B. Sanfilippo & Son, a producer of nut and dried fruit products, saw its stock plunge 13.41% in pre-market trading on Thursday. The sharp drop came after the company reported fiscal Q2 earnings that fell short of expectations.
According to the latest financial results, the company's fiscal Q2 net income declined to $13.6 million, or $1.16 per diluted share, down from $19.2 million, or $1.64 per share a year earlier. The earnings decline was primarily driven by higher commodity costs for most major tree nuts and competitive pricing pressures that led to lower selling prices.
Despite the earnings miss, the company reported a 3.4% increase in net sales to $301.1 million, driven by a 7.1% rise in sales volume across all distribution channels. However, this sales growth was offset by a 3.4% decrease in the weighted average selling price per pound due to strategic pricing decisions and intense competition.
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