Stock reacted to earnings
On February 25, 2016, before the market opened, Pinnacle Foods (PF) reported its financial results for the fourth quarter and full-year ending December 27, 2015. Management discussed the 4Q15 performance over a conference call after the market opened. The stock rose 2.5% on the same day. The earnings beat analysts’ estimates. The margins rose for the quarter and closed at $43.34.
The stock fell 2% since its last earnings report on October 29, 2015. The stock fell 1.4% on the day of its fiscal 3Q15 earnings release. The company gained ~21% in 2015. So far, the stock rose 2% in 2016. It fell 1% in the last two months. The stock’s price movements on a YTD (year-to-date) and month-to-date basis are 1.9% and 0.88%, respectively. Pinnacle Foods rose 4.4% on a trailing-five-day basis. On February 26, it traded at $43.27, respectively.
Peers’ stock performances
Pinnacle Foods is based in Parsippany, New Jersey. Along with its subsidiaries, it manufactures, markets, and distributes branded convenience food products in North America. Its peers in the industry include General Mills (GIS), Treehouse Foods (THS), and Synder’s Lance (LNCE). Snyder’s Lance has fallen 2.6%. So far, General Mills and Treehouse Foods have gained 2.6% and 12.3% in 2016.
Snyder’s Lance, General Mills, and Treehouse Foods closed at $32.34, $59, and $85.5 on February 26. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 2.3% of its portfolio in Pinnacle Foods. It closed at $56.01 on February 26. It returned 1.4% YTD.
What’s in the series?
In this series, we’ll explore how Pinnacle Foods performed in 4Q15. We’ll discuss how the Gardein acquisition in 2014 benefited the company in 2015. We’ll also look at the company’s revenue trend and what made the revenue rise in 4Q15. We’ll discuss how the stock and its peers are trading compared to their moving averages and what Wall Street analysts recommend for the stock after the earnings release. Finally, we’ll see how much Pinnacle’s margins rose for the quarter. We’ll discuss the company’s outlook for 2016. We’ll also provide an update on its recent acquisition.