Overhill Farms Inc., a Vernon-based frozen foods maker, reported lower-than-expected second quarter earnings on Monday, sending its shares down sharply.
The company reported quarterly earnings of $875,000 (6 cents per share) down from $1.2 million (8 cents) from the same period last year. Analysts had predicted earnings of 10 cents per share. Revenues rose 5 percent to $46 million.
Company executives attributed the earnings decline to inefficiencies in 32 new product launches, as well as costs associated with plant upgrades.
By the close of Monday's trading, Overhill's shares fell 85 cents, or 12.5 percent, to $5.95. Last week, in anticipation of strong earnings, the company's stock had climbed more than 10 percent.
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