Aug. 6 (Bloomberg) -- Jamba Inc. fell the most since 2011 after the seller of juices and snacks reported second-quarter sales that trailed analysts’ estimates.
The shares tumbled 13 percent to $13.92 at 3:09 p.m. in New York after dropping 16 percent, the biggest intraday decline since Nov. 23, 2011.
Revenue totaled $67.3 million for the quarter that ended July 2, the Emeryville, California-based company said in a statement yesterday. The average of six estimates compiled by Bloomberg was $70.4 million. Earnings per share matched the 36-cent average projection.
“The decline is simply the fact that second-quarter sales didn’t meet expectations,” Conrad Lyon, a B. Riley & Co. analyst, said today in a telephone interview. “The majority of names in the restaurant sector have displayed similar results. Some have postulated that it’s consumers firing all the gunpowder on buying big-ticket items, be it cars, or be it second homes, refinancing homes, sucking up their discretionary cash.”
Lyon, who is based in Los Angeles, recommends buying the stock. Jamba shares had gained 43 percent this year through yesterday, as the Russell 2000 Index rose 25 percent.
Jamba seeks to boost future sales through a long-term focus on labor and supply-chain strategies, as well as marketing initiatives, Chief Executive Officer James White said on a conference call yesterday.
The company maintained its forecasts of 2013 growth in comparable sales from company-owned stores of 4 percent to 6 percent and annual revenue from consumer packaged goods $4 million to $5 million.
To contact the reporter on this story: Kathleen Chaykowski in San Francisco at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Kraut at email@example.com