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Bemis Company Declared a Quarterly Dividend of $0.29 per Share

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Price movement

Bemis Company (BMS) has a market cap of $4.7 billion. It fell by 0.56% and closed at $49.38 per share on May 5, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -1.6%, -3.3%, and 11.2%, respectively, as of the same day. This means that Bemis Company is trading 4.1% below its 20-day moving average, 3.9% below its 50-day moving average, and 7.7% above its 200-day moving average.

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Related ETF and peers

The Vanguard Materials ETF (VAW) invests 0.59% of its holdings in Bemis. VAW tracks a very broad market-cap-weighted index of US materials companies. VAW’s YTD price movement was 7.5% as of May 5, 2016.

The market caps of Bemis’s competitors are as follows:

  • Sealed Air Corporation (SEE) – $9.4 billion
  • Avery Dennison Corporation (AVY) – $6.7 billion
  • Berry Plastics Group (BERY) – $4.3 billion

Bemis declared a quarterly dividend

Bemis Company declared a regular quarterly cash dividend of $0.29 per share on its common stock. The dividend will be paid on June 1, 2016, to shareholders of record at the close of business on May 17, 2016.

On May 2, 2016, the company acquired the medical device packaging operations and related value-added services of SteriPack Group. This transaction includes a facility in Ireland and packaging production assets in Malaysia and the US.

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Performance in fiscal 1Q16

Bemis reported fiscal 1Q16 net sales of $9.7 billion—a fall of 6.9% compared to net sales of $1.04 billion in fiscal 1Q15. The sales of US Packaging and Global Packaging fell by 6.6% and 7.7%, respectively, in fiscal 1Q16—compared to fiscal 1Q15. It reported restructuring and acquisition-related costs of $0.8 million in fiscal 1Q16—compared to $5.0 million in fiscal 1Q15.

Its net income and EPS (earnings per share) rose to $56.2 million and $0.59, respectively, in fiscal 1Q16—compared to $54.4 million and $0.55, respectively, in fiscal 1Q15.

Bemis’s cash and cash equivalents fell by 15.4% and its inventories rose by 3.7% in fiscal 1Q16—compared to fiscal 4Q15. Its current ratio and debt-to-equity ratio rose to 2.1x and 1.9x, respectively, in fiscal 1Q16—compared to 1.9x and ~1.9x, respectively, in fiscal 4Q15.

During this quarter, it repurchased 1.0 million shares for $44.3 million. As of March 31, 2016, there were 22.4 million remaining shares for repurchase.

Projections

Bemis made the following projections for fiscal 2016:

  • It expects adjusted EPS of $2.68–$2.78. This was lowered due to operational inefficiencies in the company’s Latin American business and in the North American healthcare business.
  • It expects cash from operations of $450 million–$500 million.
  • Bemis expects capital expenditures of ~$200 million to support productivity and efficiency projects and growth projects.

Next, we’ll take a look at Archer Daniels Midland.

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