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Yesterday’s Consumer Pops and Drops: GPRO, WRK, F, CL, and BC

PART:
1 2 3 4 5 6 7 8 9 10 11
Part 9
Yesterday’s Consumer Pops and Drops: GPRO, WRK, F, CL, and BC PART 9 OF 11

How Did Snyder’s-Lance Perform in 3Q16?

Price movement

Snyder’s-Lance (LNCE) has a market cap of $3.5 billion. It rose 3.2% to close at $35.76 per share on November 7, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.53%, 4.4%, and 5.8%, respectively, on the same day. LNCE is trading 1.2% above its 20-day moving average, 3.1% above its 50-day moving average, and 9.2% above its 200-day moving average.

How Did Snyder’s-Lance Perform in 3Q16?

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Related ETF and peers

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 12.2% on November 7. The market caps of Snyder’s-Lance’s competitors are as follows:

  • PepsiCo (PEP) — $153.5 billion
  • J&J Snack Foods (JJSF) — $2.2 billion

Performance of Snyder’s-Lance in fiscal 3Q16

Snyder’s-Lance reported fiscal 3Q16 net revenue of $588.8 million, a rise of 41.3% over the net revenue of $416.8 million in fiscal 3Q15. The company’s gross profit margin and operating margin expanded 200 basis points and 220 basis points, respectively, between fiscal 3Q15 and fiscal 3Q16.

Its net income and EPS (earnings per share) rose to $29.3 million and $0.30, respectively, in fiscal 3Q16, compared with $15.7 million and $0.22, respectively, in fiscal 3Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS of $81.8 million and $0.35, respectively, in fiscal 3Q16, a rise of 73.2% and 34.6% over fiscal 3Q15.

LNCE’s cash and cash equivalents fell 31.5% and its inventories rose 131.9% between fiscal 4Q15 and fiscal 3Q16. Its current ratio fell to 1.7x, and its debt-to-equity ratio rose to 1.1x in fiscal 3Q16, compared with 2.2x and 0.63x, respectively, in fiscal 4Q15.

Quarterly dividend

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.

Projections

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

  • net revenue of $2.29 billion–$2.31 billion, excluding Diamond Foods’ net revenue growth of 0%–1.5% and net revenue contribution of ~$630 million–$640 million for the ten months following February 29, 2016, and including the negative impact of unfavorable foreign currency and net price realization from lower walnut costs
  • adjusted EBITDA of $310 million to $320 million
  • capital expenditure of $75 million to $80 million
  • EPS of $1.24 to $1.30
  • net interest expense of $32.5 million to $33.5 million
  • effective tax rate of 33.5% to 34.0%

Next, we’ll look at WestRock (WRK).

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