Why J&J Snack Foods' Shares Popped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Icee king J&J Snack Foods (NAS: JJSF) were looking pretty darn delicious to investors today as they jumped as much as 14% in intraday trading after a strong fiscal-second-quarter earnings report.

So what: For the quarter ending in March, J&J, which is behind snacktastic brands including SuperPretzel, Slush Puppie, and Luigi's Real Italian Ice, reported total sales of $190 million, up 16% from last year and ahead of the average Wall Street analyst estimate of $182 million. On the bottom line, analysts were actually expecting per-share profits to fall from a year ago, from $0.46 to $0.42. Instead, earnings per share rose a stellar 20% to $0.55.


Now what: In a refreshingly honest evaluation of the company's quarter and what's ahead, J&J CEO Gerald Shreiber said, "We are pleased with our overall results for the period and are hopeful the trend continues." Which I would translate to: "The company is executing well and doing what we need to do. We have a solid business and a good base of brands. The economy, which we have no control over, has an impact on our results and we hope that that impact continues to be a positive one."

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At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye. 

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