Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Krispy Kreme Doughnuts KKD shares were trading lower by $2.11 (12 percent) at $115.63 in Thursday's session. The catalyst for the decline is a Q2 miss for adjusted EPS ($0.15 vs. $0.18 estimates) as well as sales ($127.3 million vs. $131.46 million), In addition, the company lowered guidance for the remainder of the year from $0.85 to $0.76 to the $0.80 range.
However, shares have recovered from the lows from earlier in the session. After a lower open, the issue continued lower but found support at $14.62 and staged a rebound. The issue found support at a similar level ($14.82) in August 2014 that provided the base for a rally that stalled in February at $22.32.
Today's decline is taking place on much heavier than average volume. Approaching the close, 8.3 million shares have traded compared to its 20-day average of 997,000.
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