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Pinnacle Foods Rides High on Strong Portfolio & Acquisitions
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Pinnacle Foods Inc. has a strong portfolio of brands. Also, this Zacks Rank #2 (Buy) company has been carrying out various acquisitions to expand its distribution network and customer base and boost long-term growth.
The company actively manages a diverse portfolio of iconic food brands that enjoy strong household penetration in the United States. In fact, its products can be found in over 85% of U.S. households and its brands are leaders in their respective categories. Pinnacle Foods has also been undertaking innovation to maintain market share.
For 2018, management plans to roll out products under the Birds Eye brand and will also expand its Hungry-Man Handful line. Moreover, encouraged by the popularity of Perfect Size for 1, the company will be launching a variety of products and strengthening the Duncan Hines product line. Management is also planning to improvise the gardein and Evol brands.
Pinnacle Foods Inc. Price, Consensus and EPS Surprise
Acquisitions have been one of the prime catalysts boosting revenues. The buyout of Boulder Brands, completed in January 2016, gave Pinnacle Foods a new growth platform for refrigerated foods. The Boulder Brands acquisition added the Udi's, Glutino, Smart Balance, Earth Balance and EVOL brands to the company's portfolio as well as complementary foodservice, private label and Canadian businesses.
In 2017, the company gained synergies of $16 million from the Boulder takeover. Further, management expects to benefit from the residual synergies associated with this acquisition. Moreover, during December 2017, the company carried out the acquisition of Beaver Dam food facility in an effort to expand its Birds Eye line.
We are encouraged to note that the company has an operational excellence program in place designed to generate annual productivity savings across the supply chain. On account of such efforts combined with acquisition synergies and benefits from the network optimization program, the company expects productivity for 2018 in the range of 4-4.5% of cost of products sold.
Management expects 2018 adjusted earnings per share in the range of $2.85-$2.95. Considering the guidance mid-point, earnings represent growth of 16% from 2017’s 52-week adjusted earnings of $2.50.
Looking for More? Check these 3 Trending Food Stocks
Medifast, Inc. (MED - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank #1.
Conagra Brands, Inc. (CAG - Free Report) has a long-term earnings growth rate of 8% and carries a Zacks Rank #2.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Pinnacle Foods Rides High on Strong Portfolio & Acquisitions
Pinnacle Foods Inc. has a strong portfolio of brands. Also, this Zacks Rank #2 (Buy) company has been carrying out various acquisitions to expand its distribution network and customer base and boost long-term growth.
The company actively manages a diverse portfolio of iconic food brands that enjoy strong household penetration in the United States. In fact, its products can be found in over 85% of U.S. households and its brands are leaders in their respective categories. Pinnacle Foods has also been undertaking innovation to maintain market share.
For 2018, management plans to roll out products under the Birds Eye brand and will also expand its Hungry-Man Handful line. Moreover, encouraged by the popularity of Perfect Size for 1, the company will be launching a variety of products and strengthening the Duncan Hines product line. Management is also planning to improvise the gardein and Evol brands.
Pinnacle Foods Inc. Price, Consensus and EPS Surprise
Pinnacle Foods Inc. Price, Consensus and EPS Surprise | Pinnacle Foods Inc. Quote
Acquisitions have been one of the prime catalysts boosting revenues. The buyout of Boulder Brands, completed in January 2016, gave Pinnacle Foods a new growth platform for refrigerated foods. The Boulder Brands acquisition added the Udi's, Glutino, Smart Balance, Earth Balance and EVOL brands to the company's portfolio as well as complementary foodservice, private label and Canadian businesses.
In 2017, the company gained synergies of $16 million from the Boulder takeover. Further, management expects to benefit from the residual synergies associated with this acquisition. Moreover, during December 2017, the company carried out the acquisition of Beaver Dam food facility in an effort to expand its Birds Eye line.
We are encouraged to note that the company has an operational excellence program in place designed to generate annual productivity savings across the supply chain. On account of such efforts combined with acquisition synergies and benefits from the network optimization program, the company expects productivity for 2018 in the range of 4-4.5% of cost of products sold.
Management expects 2018 adjusted earnings per share in the range of $2.85-$2.95. Considering the guidance mid-point, earnings represent growth of 16% from 2017’s 52-week adjusted earnings of $2.50.
Looking for More? Check these 3 Trending Food Stocks
United Natural Foods, Inc. (UNFI - Free Report) carries a Zacks Rank #1 (Strong Buy). Ithas a long-term earnings growth rate of 8.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast, Inc. (MED - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank #1.
Conagra Brands, Inc. (CAG - Free Report) has a long-term earnings growth rate of 8% and carries a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>