John B. Sanfilippo & Son, a major producer of nut and dried fruit products, saw its stock plummet 14.34% in pre-market trading on Thursday. The sharp decline came after the company reported disappointing fiscal Q2 earnings results.
The company's net income for the quarter declined to $13.6 million, or $1.16 per diluted share, down from $19.2 million, or $1.64 per share, a year earlier. This earnings miss was primarily driven by higher commodity costs for most major tree nuts and competitive pricing pressures that led to lower selling prices.
Although John B. Sanfilippo & Son 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, this growth was offset by a 3.4% decrease in the weighted average selling price per pound due to strategic pricing decisions and intense competition in the market.
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