Written by StockNews.com

Snyder’s-Lance Inc. (NASDAQ:LNCE) early Monday slashed its earnings guidance amid higher marketing spending, and announced the sudden retirement of its CEO.

The Charlotte, NC-based snack foods giant:

• expects Q1 earnings per share (EPS) to come in at $0.13 to $0.14, which is far below the $0.27 that Wall Street currently expects.
• Q1 revenues are seen between $530 and $532 million, also well off the $551.13 million that analysts are looking for.
• full-year earnings guidance...forecast 2017 EPS of $1.05 to $1.20, while Wall Street expects $1.38 per share for the year. That’s down from LNCE’s prior outlook of $1.24 to $1.30.
• full-year revenues are seen between $2.20 and $2.25 billion, also below analysts’ $2.27 billion view, and lower than the company’s previous forecast of $2.29 to $2.31 billion.

 Alex Pease, Executive Vice President and Chief Financial Officer of Snyder’s-Lance commented on its weak outlook via press release:

“Our Company faced difficult challenges during the first quarter that have negatively impacted earnings.

Although we saw sales and market share growth in the majority of our categories, this has come at a higher cost than planned.

Increased investments in promotional and marketing spending combined with gross margin pressure had an adverse effect on our performance and more than offset the benefits of synergy delivery related to the Diamond Foods transaction.”

Additionally, the company announced the sudden retirement of its President and CEO, Carl E. Lee, Jr., who steps down after 12 years. Brian J. Driscoll, former President and CEO of Diamond Foods, has stepped in as interim CEO. LNCE has launched a search for a permanent CEO.

Year-to-date, LNCE has gained 4.55%, versus a 4.47% rise in the benchmark S&P 500 index during the same period.

LNCE currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #10 of 61 stocks in the Food Makers category.