Berry Plastics Group, Inc. (BERY - Free Report) posted fourth-quarter fiscal 2016 (ended Oct 1, 2016) results with adjusted earnings per share of 73 cents improving around 46% year over year. Earnings comfortably beat the Zacks Consensus Estimate of 59 cents per share.
Including one-time items, the company posted earnings of 61 cents per share, up 56% from 39 cents earned in the year-ago quarter.
Berry Plastics reported sales of $1.62 billion in the quarter, up 35% from the year-ago period. However, the top line lagged the Zacks Consensus Estimate of $1.63 billion. The year-over-year increase can primarily be attributed to net sales from the AVINTIV buyout.
Operational Update
Cost of sales jumped 35% to $1.3 billion from $975 million in fourth-quarter fiscal 2015. Gross profit surged 36% year over year to $301 million. Gross margin increased 10 basis points (bps) to 18.6% in the quarter.
Selling, general and administrative expenses went up 21% year over year to $110 million. Adjusted operating income came in at $174 million as against $126 million in the year-ago quarter, leading to a 30 bps expansion in operating margin to 10.8%. Benefits from Avintiv acquisition, favorable product mix and price/cost spread, including contributions from sourcing synergies along with lower selling, general, and administrative expenses, were offset by an increase in depreciation and amortization expenses as well as unfavorable currency translation.
Segmental Performance
Net sales from the Consumer Packaging segment were $693 million compared with $707 million in the year-ago quarter. Operating profit declined roughly 15% to $52 million from $61 million in the year-ago quarter.
The Health, Hygiene, & Specialties segment reported revenues of $560 million, significantly higher than $119 million in the year-ago quarter. Operating earnings increased considerably to $50 million from $7 million in the year-ago quarter.
The Engineered Materials segment’s sales fell 1% year over year to $365 million. However, operating income was up 26% year over year to $49 million.
Financial Update
Berry Plastics ended fiscal 2016 with cash and cash equivalents of $323 million compared with $228 million at the end of fiscal 2015. The company reported cash from operations of $857 million in fiscal 2016 compared with $637 million in the prior fiscal. Adjusted free cash flow for fiscal 2016 was $517 million compared with $436 million in fiscal 2015. Total debt was $5.76 billion at the end of fiscal 2016 compared with $3.69 billion at the end of fiscal 2015.
BERRY PLASTICS Price, Consensus and EPS Surprise
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Berry Plastics Group, Inc. (BERY - Free Report) posted fourth-quarter fiscal 2016 (ended Oct 1, 2016) results with adjusted earnings per share of 73 cents improving around 46% year over year. Earnings comfortably beat the Zacks Consensus Estimate of 59 cents per share.
Including one-time items, the company posted earnings of 61 cents per share, up 56% from 39 cents earned in the year-ago quarter.
Berry Plastics reported sales of $1.62 billion in the quarter, up 35% from the year-ago period. However, the top line lagged the Zacks Consensus Estimate of $1.63 billion. The year-over-year increase can primarily be attributed to net sales from the AVINTIV buyout.
Operational Update
Cost of sales jumped 35% to $1.3 billion from $975 million in fourth-quarter fiscal 2015. Gross profit surged 36% year over year to $301 million. Gross margin increased 10 basis points (bps) to 18.6% in the quarter.
Selling, general and administrative expenses went up 21% year over year to $110 million. Adjusted operating income came in at $174 million as against $126 million in the year-ago quarter, leading to a 30 bps expansion in operating margin to 10.8%. Benefits from Avintiv acquisition, favorable product mix and price/cost spread, including contributions from sourcing synergies along with lower selling, general, and administrative expenses, were offset by an increase in depreciation and amortization expenses as well as unfavorable currency translation.
Segmental Performance
Net sales from the Consumer Packaging segment were $693 million compared with $707 million in the year-ago quarter. Operating profit declined roughly 15% to $52 million from $61 million in the year-ago quarter.
The Health, Hygiene, & Specialties segment reported revenues of $560 million, significantly higher than $119 million in the year-ago quarter. Operating earnings increased considerably to $50 million from $7 million in the year-ago quarter.
The Engineered Materials segment’s sales fell 1% year over year to $365 million. However, operating income was up 26% year over year to $49 million.
Financial Update
Berry Plastics ended fiscal 2016 with cash and cash equivalents of $323 million compared with $228 million at the end of fiscal 2015. The company reported cash from operations of $857 million in fiscal 2016 compared with $637 million in the prior fiscal. Adjusted free cash flow for fiscal 2016 was $517 million compared with $436 million in fiscal 2015. Total debt was $5.76 billion at the end of fiscal 2016 compared with $3.69 billion at the end of fiscal 2015.
BERRY PLASTICS Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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