UPDATE: Wedbush Reiterates On Jamba On Good Revenues Despite EPS Miss

In a report published Wednesday, Wedbush analyst Kurt Frederick reiterated an Outperform rating on Jamba, Inc. (NASDAQ: JMBA), but lowered the price target from $17.00 to $15.00.

In the report, Wedbush noted, “Revenues of $59M were in line with our estimate, while adjusted EPS of $0.03 fell well short of our $0.32 estimate on increased cost of sales and labor as the company pushed to roll out premium juices, cold-pressed juices and energy bowls, driving a 3x increase in juice sales y/y to 15% of sales (up from 7% four months ago). Labor costs were also impacted 110 bps ($0.035 per share) by disavowal of Federal Employment Tax Credit in CA. Jamba is now working to improve labor efficiency and mitigate higher fresh produce costs over the next few quarters.”

Jamba closed on Tuesday at $12.90.