After Walmart's squeeze, can Twinkies still thrive?

(FOX News) - News of retail giant Walmart devoting less shelf space to Twinkies and a weak earnings report caused shares of baked goods company Hostess to take a nosedive this week. But many analysts don't seem too worried about the future of the iconic treat.

"We continue to see the Hostess Brands as strong and it has been a large share gainer over the last five years and has continued to grow share [year-to-date]," Michael Gallo, an analyst with CL King & Associates, tells FOX Business.

Gallo says the classic treat became somewhat a "victim of its own success" in Walmart as it had gotten very strong promotional support last year behind some new innovations such as Chocolate Cake Twinkies which has not reoccurred this year.

Hostess Brands, whose portfolio includes other sweet treats like Ho Hos and Donettes, said its weak second-quarter report was a result of "unexpected headwinds."

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