Pinnacle Foods, the US group behind brands including Duncan Hines and Gardein, has provided a new forecast for its 2016 underlying earnings per share.
The company “strengthened” its forecast for its adjusted diluted earnings per share “to the high end of its guidance range”. Pinnacle had been predicting adjusted diluted earnings per share of US$2.13 to $2.15.
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The group issued the revised forecast as it announced plans to launch a refinancing of the debt under its senior secured credit facilities. Pinnacle said the move is expected to result in its interest costs being “comparable to or slightly below 2016, despite the impact of the rising interest rate environment on the company’s floating rate debt”. Pinnacle added: “It is also expected to improve the company’s debt maturity profile.”
Pinnacle reiterated its outlook for its 2017 adjusted diluted EPS of $2.43 to $2.48, excluding a $0.05 benefit expected from the adoption of new tax treatment for stock-based compensation costs, plus costs associated with the proposed refinancing.
