Pinnacle Foods (PF) has a market cap of $5.8 billion. It fell by 0.34% to close at $49.52 per share on August 16, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.36%, 1.8%, and 18.1%, respectively, on the same day. PF is trading 0.52% above its 20-day moving average, 5.8% above its 50-day moving average, and 13.4% above its 200-day moving average.
Related ETFs and peers
The PowerShares DWA Consumer Staples Momentum Portfolio ETF (PSL) invests 3.4% of its holdings in Pinnacle Foods. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum. The YTD price movement of PSL was 3.4% on August 16.
The iShares Dow Jones US ETF (IYY) invests 0.02% of its holdings in Pinnacle Foods. The ETF tracks a broad, cap-weighted index of companies covering 95% of the US market.
The market caps of Pinnacle Foods’ competitors are as follows:
Pinnacle Foods declares dividend
Pinnacle Foods has declared a quarterly cash dividend of $0.29 per share, a rise of ~12%, on its common stock. The dividend will be paid on October 10, 2016, to shareholders of record at the close of business on August 30, 2016.
Performance of Pinnacle Foods in 2Q16
Pinnacle Foods reported 2Q16 net sales of $756.4 million, a rise of 19.7% over the net sales of $631.7 million in 2Q15. Sales from its Birds Eye frozen segment rose by 6.1% and sales from its Duncan Hines grocery and specialty foods segments fell by 2.7% and 8.0%, respectively, between 2Q15 and 2Q16.
PF reported Boulder Brands sales of $122.6 million in 2Q16. The company’s gross profit margin and EBIT (earnings before interest and tax) rose by 9.2% and 20.0%, respectively, between 2Q15 and 2Q16.
Its net income and EPS (earnings per share) rose to $45.8 million and $0.39, respectively, in 2Q16, compared with $43.7 million and $0.37, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $141.5 million and $0.42, respectively, in 2Q16, rises of 29.5% and 16.7%, respectively, from 2Q15.
Pinnacle Foods’ cash and cash equivalents fell by 28.4% and its inventories rose by 9.5% between 4Q15 and 2Q16. Its current ratio fell to 2.0x and its debt-to-equity ratio rose to 2.5x in 2Q16, compared with 2.1x and 1.9x, respectively, in 4Q15.
The company has made the following projections for 2016:
- adjusted EPS in the range of $2.10–$2.15, which includes ~$0.07–$0.08 from the Boulder Brands acquisition
- input cost inflation at the low end of the range of 2%–3%
- interest expense of ~$140 million
- capital expenditure in the range of $115 million–$125 million
In the next article, we’ll discuss Wolverine World Wide.