The Marzetti Company (MZTI) reports earnings Tuesday: what to watch

what happened

The Marzetti Company (MZTI), a specialty food maker, will report earnings on Tuesday before the market opens, according to stockstory.org.

Last quarter the company posted revenue of $465 million, down 2.2% from a year earlier. Sales fell short of analyst expectations, while earnings per share beat estimates. Revenue has missed Wall Street forecasts several times over the past two years.

Investors expect flat revenue this quarter, after a 3.5% gain in the same period last year. Analysts have mostly kept their estimates unchanged over the past 30 days. Among peers in shelf-stable foods, Conagra's revenue fell 1.4% and Hershey's rose 3%. Conagra shares dropped 6.6% after its report, while Hershey gained 1.1%. MZTI shares are up 10.5% over the past month, trading at $109.97 against an average analyst price target of $142.60.

why it matters

For the broader market this is a routine preview of a mid-sized company, so its direct impact is limited. A more useful signal for the sector is how Conagra and Hershey shares reacted to their own results, which shows how investors are pricing demand for packaged food. Those following the stock will watch whether revenue matches the flat level analysts have already built into their models.

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