Wm. Wrigley Jr. gave investors a little something to chew on this morning . . . sorry about that. The company announced earnings of 59 cents per share during the third quarter, thanks to higher chewing gum sales in Europe and Asia. Shipments to these international markets along with the weak U.S. dollar helped the gum guru's sales increase 13% to $1.3 billion. All of this news is great, but the stock is down nearly 7% because it missed the consensus estimate by a penny per share.
One analyst noted that expectations were high going into the quarter, and the shares are paying for the high hopes. Aside from the heightened expectations, volume shipments dropped 14% in North America in the wake of a reduction of the amount of product in warehouses at retailers or distributors. Investors were taken aback by this news as well. The stock may have found a measure of support at the 62 level, as it provided resistance in the past. That said, it may be the round-number 60 level that steps up to assist the shares, as it is also the location of WWY's 20-week moving average. The last time the equity finished a week below this trendline was March.