Stock reaction to earnings
On April 28, 2016, Pinnacle Foods (PF) reported its financial results for fiscal 1Q16, which ended March 27. Management discussed the 1Q16 performance in a conference call after the Market opened. The stock fell 2% on the day. The company’s earnings were in line with analysts’ estimates, while revenue missed estimates.
Pinnacle Foods’ stock has fallen 3% since its previous earnings release on February 25. The stock also fell 5% on March 23 when Pinnacle Foods announced that its CEO, Robert J. Gamgort, would leave the company at the end of April. He will be the CEO of Keurig Green Mountain. Gamgort had been Pinnacle’s CEO since July 2009. On April 27, Pinnacle announced that its board of directors named Mark A. Clouse as the company’s new CEO, effective May 23. Mark A. Clouse is currently chief commercial officer at Mondelez International. The company also reaffirmed its earnings outlook for 2016 on the same day. The stock fell 0.3% on the day.
So far, the stock hasn’t gained much in 2016. It rose 21% in 2015. On May 3, Pinnacle Foods was outperformed by the Market, as represented by the S&P 500 Index, by 2.5%. PF closed at $42.24 on May 3.
Peers’ stock performance
Pinnacle Foods (PF) is based in Parsippany, New Jersey. The company, along with its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America.
Pinnacle Foods’ peers in the industry include WhiteWave Foods (WWAV), TreeHouse Foods (THS), and Lancaster Colony (LANC). So far, WhiteWave Foods has risen 5% in 2016. TreeHouse Foods has gained 10.5%, and Lancaster Colony has gained 3.3%. WhiteWave Foods, TreeHouse Foods, and Lancaster Colony closed at $40.78, $86.67, and $119.29, respectively, on May 3.
To gain exposure to Pinnacle Foods, you can invest in the PowerShares DWA Consumer Staples Momentum Portfolio (PSL). PSL invests 2.4% of its holdings in Pinnacle Foods.
In this series, we’ll cover how Pinnacle Foods performed in its recent fiscal 1Q16. We’ll see what contributed to its revenue, earnings, and segmental performance. We’ll also look at the company’s outlook for 2016. Finally, we’ll look at what Wall Street analysts recommend for the stock and discuss its moving averages.