Inventure Foods saw sales and profits climb in the first nine months of 2014 – but shares in the US food group fell yesterday (30 October) after third-quarter earnings missed analyst expectations.

Shares in the snacks and frozen foods manufacturer closed down over 3% in New York after Inventure’s third-quarter earnings fell below Wall Street estimates.

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In the three months to 27 September, net revenues increased 33.1% to US$72.6m, while Inventure’s adjusted diluted earnings per share were $0.11, matching the number seen in last year’s third quarter. Analysts had forecast adjusted earnings per share of $0.12.

Adjusted net income increased 1.6% during the quarter to $2.2m. Adjusted EBITDA increased 13% to $5.9m.

On a reported basis, net income grew 43.6% to $3.1m. Operating income was up 46.3% at $5.4m.

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In the third quarter, frozen food sales increased 67.8%, although snacks sales fell 2.2%. Inventure said its co-packing snacks business had lapped a product launch in the third quarter of 2013. It also discontinued some lower-margin sales.

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The first nine months of 2014 saw a 55.1% increase in net income to US$7.2m. Operating income grew by almost two-thirds to $13m.

Adjusted net income, which excluded one-off items, grew 28.7% to $5.9m. Adjusted EBITDA increased 42.2% to $16.9m.

Revenues were up 35.2% at $211.9m, thanks to a jump in frozen foods sales, which increased 63.2%. Net revenues from Inventure’s snacks arm were up 4.4%.

“We continue to like the Inventure story, given the company’s healthy-natural positioning, solid consumer brands, and distinctive operating capabilities, which collectively should enable sales and earnings growth well in excess of the broader food industry,” William Blair analyst Jon Andersen wrote in a note to clients.