Papa John's shares drop after earnings miss
Papa John's International Inc. PZZA, -2.98% shares fell in the extended session Tuesday after the pizza chain's earnings and lowered outlook missed Wall Street estimates. Papa John's shares dropped 10% after hours, following a 3% decline to close the regular session at $41.07. The company reported second-quarter net income of $11.7 million, or 36 cents a share, compared with $24.1 million, or 65 cents a share, in the year-ago period. Adjusted earnings were 49 cents a share. Revenue declined to $408 million from $434.8 million in the year-ago period. Analysts surveyed by FactSet had estimated 54 cents a share on revenue of $424.4 million. Papa John's lowered its forecast earnings of the year to a range of $1.30 to $1.80 a share, while analysts expect $2.05 a share. At the close, Papa John's shares were down nearly 27% for the year, compared with a 6.9% gain on the S&P 500 index SPX, +0.28% Papa John's founder John Schnatter recently sued the company following his resignation as chairman.