Utz Brands stock falls after Q2 earnings miss, UBS maintains Neutral rating

Investing.com - Utz Brands (NYSE:UTZ), the snack food company with a market capitalization of $1.87 billion, saw its shares decline after reporting second-quarter earnings that fell short of analyst expectations, while UBS maintained its Neutral rating and $15.00 price target. According to InvestingPro data, the stock is currently trading below its Fair Value, suggesting potential upside opportunity.

The company posted earnings per share of $0.17, below both UBS and Street forecasts of $0.18, as stronger top-line growth was offset by weaker gross margin and operating profit margin performance. With a current gross profit margin of 34.76% and annual revenue of $1.43 billion, UBS analyst Peter Grom attributed the margin shortfall largely to timing issues, as the second quarter absorbed higher selling, distribution, and administrative expenses amid increased marketing and promotional investments.

Utz Brands raised its full-year top-line and adjusted EBITDA guidance, with the latter adjustment coming from raising the low end of its previous range. However, the company lowered its earnings per share outlook due to higher interest expense and depreciation and amortization costs.

Despite the earnings miss, UBS expressed increased confidence that Utz can continue to deliver organic growth amid challenging category conditions, suggesting the company’s updated organic sales outlook might prove conservative.

UBS maintained its Neutral stance on the stock, indicating it would wait for a more attractive risk/reward profile before taking a more constructive view on Utz Brands.

In other recent news, Utz Brands Inc. reported its Q2 2025 earnings, which revealed an earnings per share (EPS) of $0.17. This figure fell short of the anticipated $0.19, marking a 10.53% negative surprise. Despite the EPS miss, the company achieved revenue of $366.7 million, slightly exceeding forecasts. These earnings results are significant for investors as they provide insights into the company’s financial performance. While the revenue surpassed expectations, the EPS miss may be a point of concern for some stakeholders. There have been no recent updates regarding mergers or acquisitions involving Utz Brands. Additionally, there is no new information on any analyst upgrades or downgrades for the company at this time. These developments are part of the latest updates concerning Utz Brands.

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