Snyder’s-Lance Declares Dividend of $0.16 per Share

Snyder’s-Lance (LNCE) has a market cap of $3.4 billion. It fell 0.12% to close at $34.64 per share on November 4, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.0%, 1.8%, and 2.5%, respectively, on the same day.

LNCE is trading 1.9% below its 20-day moving average, 0.18% below its 50-day moving average, and 5.8% above its 200-day moving average.

The iShares Russell 2000 Value ETF (IWN) invests 0.34% of its holdings in LNCE. The ETF tracks an index of US small-cap value stocks. The index selects value stocks from a universe of stocks ranked 1,001–3,000 by market cap. The YTD price movement of IWN was 9.6% on November 4.

The market caps of Snyder’s-Lance’s competitors are as follows:

• PepsiCo (PEP) — $152.0 billion
• J&J Snack Foods (JJSF) — $2.1 billion

Snyder’s-Lance has declared a regular quarterly cash dividend of $0.16 per share on its common stock. The dividend will be paid on November 29, 2016, to shareholders of record at the close of business on November 21, 2016.

Snyder’s-Lance (LNCE) reported fiscal 2Q16 net revenue of $609.5 million, a rise of 41.3% compared to net revenue of $431.4 million in fiscal 2Q15. Its net income rose to $19.7 million and its EPS (earnings per share) fell to $0.20 in fiscal 2Q16 compared to net income and EPS of $17.3 million and $0.24, respectively, in fiscal 2Q15.

Snyder’s-Lance reported adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] and adjusted EPS of $78.6 million and $0.28, respectively, in fiscal 2Q16, a rise of 56.6% and 3.7%, respectively, compared to fiscal 2Q15.

LNCE’s cash and cash equivalents fell 3.6% and its inventories rose by 106.0% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio fell to 1.7x, and its debt-to-equity ratio rose to 1.1x in fiscal 2Q16 compared to a current ratio and a debt-to-equity ratio of 2.2x and 0.63x, respectively, in fiscal 4Q15.

Snyder’s-Lance (LNCE) has made the following projections for fiscal 2016:

• net revenue in the range of $2.29 billion–$2.33 billion, which excludes the contribution from Diamond Foods’s net revenue growth of flat to 2%.
• adjusted EBITDA in the range of $313 million–$325 million
• capital expenditures in the range of $80 million–$85 million
• EPS in the range of $1.22–$1.30, which excludes special items and charges of acquisition of Diamond Foods
• effective tax rate in the range of 34%–35%

It expects EPS in the range of $0.28–$0.31 for fiscal 3Q16.

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