Fiscal 2015 results impacted the stock price
Snyder’s-Lance (LNCE) stock fell 6% after the company reported its fiscal 2015 results after the market closed on February 29, 2016. Along with the fiscal results, the company also announced the completion of the Diamond Foods acquisition. The earnings and revenue demonstrated a year-over-year decline along with a fall in the margins. This impacted the stock. It didn’t give investors much to cheer about.
As of March 2, the stock has lost 5% since its last earnings report on October 28, 2015. The stock fell 8% after its fiscal 3Q15 results. The company gained ~14% in 2015. So far, the stock has lost 5% 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 -8.1% and -3.6%, respectively. Snyder’s-Lance rose ~2% on a trailing-five-day basis. It rose by 3% and closed at $31.50, respectively, on March 2.
Snyder’s-Lance has a dividend yield of 2.04% as of March 2. For 2015, it paid $0.64 per share in total dividends. On February 9, the company approved a regular quarterly cash dividend of $0.16 per share to be paid on March 4 to shareholders of record at the close of business on February 24, 2016.
Peers’ stock performances
Snyder’s-Lance is based in Charlotte, North Carolina. It manufactures, distributes, markets, and sells snack food products in the US. It’s part of the processed and packaged goods industry. Its peers in the industry include Kellogg (K), WhiteWave Foods (WWAV), and Keurig Green Mountain (GMCR). So far, the peers’ stock have gained in 2016. Kellogg gained 5%, WhiteWave gained 3.1%, and Keurig Green Mountain gained 1.7% in 2016, respectively.
Kellogg, WhiteWave Foods, and Keurig Green Mountain closed at $75.09, $40.04, and $91.67 on March 2. The PowerShares Dynamic Food and Beverage (PBJ) invests 2.7% of its portfolio in Snyder’s-Lance. PBJ has 51% holdings in the food and beverage industry. It closed at $31.91 on March 2. It returned -0.9% YTD. The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.7% in Keurig Green Mountain and 2.6% in Kellogg.
What’s in this series?
In this series, we’ll discuss the details of the acquisition of Snyder’s-Lance with Diamond Foods. We’ll also discuss how the company performed in fiscal 4Q15 and fiscal 2015. We’ll look at the headwinds that impacted the revenue. We’ll also see what the company’s initiative is to expand its margin. We’ll discuss Snyder’s-Lance and its peers’ moving averages. We’ll see what Wall Street analysts are recommending for the stock after the results.