Bemis Company, Inc. reported first-quarter 2019 adjusted earnings per share of 67 cents, which improved 6% year over year. The bottom line also beat the Zacks Consensus Estimate of 66 cents.
Including one-time costs, Bemis reported earnings of 66 cents per share compared with 52 cents in the prior-year quarter.
Bemis Company, Inc. Price, Consensus and EPS Surprise
Operational Update
Net sales were down 2.5% to $1,001 million from $1,027 million reported in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1,002 million.
Cost of products sold declined 3.6% year over year to $799 million in the January-March quarter. Gross profit rose 2% year over year to $202 million. Gross margin came in at 20.2% during the first quarter of 2019 compared with 19.3% in the year-ago quarter.
Selling, general and administrative expenses of $97 million from remained flat with the year-earlier quarter. Adjusted operating income increased 5% year over year to $95.4 million.
Segmental Performance
Net sales in the U.S. Packaging segment improved 0.4% year over year to $669 million. The segment’s operating profit rose 5% to $92 million from $87 million in the prior-year quarter.
Net sales in the Latin America Packaging segment declined around 16% year over year to $142 million. The segment’s operating profit improved 47% to $11.9 million from year-ago quarter’s figure of $8.0 million.
Net sales in the Rest of World Packaging segment were down 1% year over year to $190 million. This segment’s operating profit increased 22% to $20.1 million from $16.5 million in the prior-year quarter.
Financial Update
Bemis reported cash and cash equivalents of $57.7 million at the end of the first quarter of 2019, down from $76.1 million reported at the end of 2018. Cash flow from operations was $1.5 million in the first quarter of 2019, compared with $54.3 million recorded in comparable period last year.
Bemis’ net debt increased to $1.35 billion as of Mar 31, 2019, from $1.28 billion as of Dec 31, 2018.
Bemis & Amcor Merger
In August 2018, Amcor and Bemis announced the plan to merge their operations in an all-stock transaction worth $6.8 billion. The merger will create a global leader in consumer packaging. This merger will provide $180 million of cost synergies identified as part of the transaction.
Share Price Performance
Bemis' shares have gained 27.9% in the past year, outperformed the industry’s growth of 0.1%.
Zacks Rank & Key Picks
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 128.6% in the past year.
Lawson Products has an expected earnings growth rate of a whopping 102.5% for the current year. The stock has appreciated 33.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 21.4%, over the past year.
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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.
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Bemis Company, Inc. reported first-quarter 2019 adjusted earnings per share of 67 cents, which improved 6% year over year. The bottom line also beat the Zacks Consensus Estimate of 66 cents.
Including one-time costs, Bemis reported earnings of 66 cents per share compared with 52 cents in the prior-year quarter.
Bemis Company, Inc. Price, Consensus and EPS Surprise
Operational Update
Net sales were down 2.5% to $1,001 million from $1,027 million reported in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1,002 million.
Cost of products sold declined 3.6% year over year to $799 million in the January-March quarter. Gross profit rose 2% year over year to $202 million. Gross margin came in at 20.2% during the first quarter of 2019 compared with 19.3% in the year-ago quarter.
Selling, general and administrative expenses of $97 million from remained flat with the year-earlier quarter. Adjusted operating income increased 5% year over year to $95.4 million.
Segmental Performance
Net sales in the U.S. Packaging segment improved 0.4% year over year to $669 million. The segment’s operating profit rose 5% to $92 million from $87 million in the prior-year quarter.
Net sales in the Latin America Packaging segment declined around 16% year over year to $142 million. The segment’s operating profit improved 47% to $11.9 million from year-ago quarter’s figure of $8.0 million.
Net sales in the Rest of World Packaging segment were down 1% year over year to $190 million. This segment’s operating profit increased 22% to $20.1 million from $16.5 million in the prior-year quarter.
Financial Update
Bemis reported cash and cash equivalents of $57.7 million at the end of the first quarter of 2019, down from $76.1 million reported at the end of 2018. Cash flow from operations was $1.5 million in the first quarter of 2019, compared with $54.3 million recorded in comparable period last year.
Bemis’ net debt increased to $1.35 billion as of Mar 31, 2019, from $1.28 billion as of Dec 31, 2018.
Bemis & Amcor Merger
In August 2018, Amcor and Bemis announced the plan to merge their operations in an all-stock transaction worth $6.8 billion. The merger will create a global leader in consumer packaging. This merger will provide $180 million of cost synergies identified as part of the transaction.
Share Price Performance
Bemis' shares have gained 27.9% in the past year, outperformed the industry’s growth of 0.1%.
Zacks Rank & Key Picks
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 128.6% in the past year.
Lawson Products has an expected earnings growth rate of a whopping 102.5% for the current year. The stock has appreciated 33.4% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 21.4%, over the past year.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
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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