US snack maker Snyder’s-Lance today (4 November) reported higher sales and profits for the first nine months of the year – but shares fell after the company lowered its full year earnings expectations.
The Pretzel Crisps maker reported net income for the nine months ended 27 September of $166.3m compared with $55.7m for the same period a year earlier. Net income benefited from an after-tax gain on the sale of its private brands business. Sales for the period were also higher at $1.18bn compared with $1.12bn last year.
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Net profit for the third quarter was up at $137.8m versus $23.1m. Earnings per share were $0.24. This however missed analyst expectations by $0.05. Sales, though up 6.2% to $409m, missed estimates by US$9.66m.
Alongside the results, Snyder’s-Lance updated its 2014 forecasts. The company estimates net revenue will increase be $1.73-1.74bn. It also forecast earnings per diluted share, excluding special items, are expected to be between $1.07 and $1.12, adjusted for recent transactions.
The earnings guidance of compared with the Thomson Reuters consensus estimate of $1.13.
Both revisions trimmed the top end of the ranges Snyder’s-Lance issued in August. At the time, the company estimated net revenue would be $1.72-$1.75bn. Earnings per diluted share are expected to be between $1.10 and $1.18, adjusted for recent transactions.
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By GlobalDataCEO, Carl Lee, said: “As we execute our plans, we see our company growing and becoming an even stronger leader in innovation and ‘better for you’ snacking options.
“Revenue growth is pacing ahead of expectations on new products innovation and ‘better for you’ offerings, while we deal with the same headwinds all food companies are experiencing on base business. We continue to accelerate our efforts on three product and revenue fronts: innovation; ‘better for you’ snacks and base business renovation to drive excitement. We expect to finish 2014 strong and to have a fast start in 2015, having launched a number of Q4 consumer programmes.”
