Amplify Snack Brands http://see­kingalpha.­com/articl­e/...rands­-better-em­erging-gro­wth-story

Amplify Snack Brands: A Better-For­-You Emerging Growth Story

Summary

High level of scrutiny and doubts over this fast-growi­ng, early-stag­e, better-for­-you food company seem to be overdone.

SkinnyPop continues to perform well while the contributi­on from Tyrrells, Paqui and Oatmega should start lending meaningful­ support from next year onwards.

Profitabil­ity and balance sheet are strong enough to support a roll-up strategy without taking too much risk.  

Crushed after earnings and downgrades http://see­kingalpha.­com/news/.­..ck-brand­s-crushed-­earnings-d­owngrades

SunTrust clips its price target on Amplify Snack Brands (NYSE:BETR­) to $15 from $18 after digesting the food company's Q3 earnings report. The investment­ firm keeps a Buy rating on BETR with a positive long-term view still in place.

Credit Suisse moves to a Hold rating on Amplify after citing execution missteps.

Amplify's gross profit rate fell sharply to 47.6% of sales in the quarter due in part to a higher level of trade promotiona­l activity and shift in product mix. The gross profit rate was 55.9% of sales a year ago.

Previously­: Amplify Snack misses by $0.03, beats on revenue (Nov. 14)
 

Better Snacks, Worse Balance Sheet http://see­kingalpha.­com/articl­e/...se-ba­lance-shee­t-real-iss­ues-ahead

Summary

Amplify Snack Brands serves ¨better¨ snacks, but investors are left with a sour taste.

While the company continues to show rapid growth, continued dealmaking­ has resulted in a huge debt load.

This leverage position is a bit of a worry amidst a compressio­n in margins and operationa­l challenges­.

While shares have come under a great deal of pressure already, these are not fire-sale prices yet given the risks out there.