Dive Brief:
- Nestle reported sales growth of 4.5% for the first nine months of the year, less than the 4.7% forecast by analysts.
- The weaker-than-expected results suggest that the world's largest food company will have a difficult time meeting its sales growth target of 5% for the full year.
- Trading in Nestle shares were halted temporarily this morning after plummeting 4% within moments of the earnings report.
Dive Insight:
Bad news all around for Nestle, which reported difficulties in Europe and Asia and has continuing problems with it frozen-food brands in North America. But the biggest problem Nestle faces today is that its disappointing earnings report comes the day after rival Danone topped expectations. That sets up a comparison among fund managers that likely won't work in favor of Nestle's share price.