Earnings Review and Free Research Report: Blue Buffalo’s Adjusted Diluted EPS Increased 10.9%

Research Desk Line-up: Sanderson Farms Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Blue Buffalo Pet Products, Inc. (NASDAQ: BUFF) (“Blue Buffalo”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BUFF, following the Company’s posting of its financial results on August 08, 2017, for the second quarter of the fiscal year 2017. The Company’s total revenue increased 2.8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Food – Major Diversified industry. Pro-TD has currently selected Sanderson Farms, Inc. (NASDAQ: SAFM) for due-diligence and potential coverage as the Company reported on August 24, 2017, its financial results for Q3 FY17 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Sanderson Farms when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BUFF; also brushing on SAFM. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended June 30, 2017, Blue Buffalo’s total revenue increased 2.8% to $294.83 million on a y-o-y basis from $286.85 million in Q2 FY16. The increase was mainly due to a favorable product mix. During Q2 FY17, the Company’s Dry Foods segment’s revenue increased 3.3% to $237.5 million on a y-o-y basis and Wet Foods, Treats, and Other Products segment’s revenue increased 0.7% to $57.3 million on a y-o-y basis. The total revenue was below analysts’ expectations of $302.5 million.

During Q2 FY17, Blue Buffalo’s gross profit increased 8.2% to $137.74 million from $127.30 million in Q2 FY16. The increase was primarily due to supply chain efficiencies including lower input costs. For the reported quarter, the Company’s gross margin increased 230 basis points to 46.7% of revenue from 44.4% of revenue in Q2 FY16.

For the reported quarter, the Company’s selling, general, and administrative expenses (SG&A) increased 5.8% to $69.42 million from $65.60 million in Q2 FY16.

During Q2 FY17, Blue Buffalo’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased 10.8% to $70.8 million from $63.9 million in Q2 FY16. For the reported quarter, the Company’s adjusted EBITDA increased 5.1% to $71.8 million from $68.3 million in Q2 FY16.

During Q2 FY17, Blue Buffalo’s operating income increased 10.7% to $68.31 million from $61.70 million in the same quarter of last year. During Q2 FY17, the Company’s operating margin increased 170 basis points to 23.2% of revenue from 21.5% of revenue in Q2 FY16. For the reported quarter, the Company’s adjusted operating margin increased 80 basis points to 23.2% of revenue from 22.4% of revenue in Q2 FY16.

During Q2 FY17, Blue Buffalo’s net income increased 16.5% to $42.68 million on a y-o-y basis from $36.62 million in Q2 FY16. During Q2 FY17, the Company’s adjusted net income increased 11.5% to $42.7 million on a y-o-y basis from $38.3 million in Q2 FY16. For the reported quarter, the Company’s diluted earnings per share (EPS) increased 16.7% to $0.21 on a y-o-y basis from $0.18 in Q2 FY16. During Q2 FY17, the Company’s adjusted diluted EPS increased 10.5% to $0.21 on a y-o-y basis from $0.19 in Q2 FY16. The adjusted diluted EPS was in-line with analysts’ expectations of $0.21.

Balance Sheet

As on June 30, 2017, Blue Buffalo’s cash and cash equivalents increased 15.7% to $338.73 million from $292.66 million in Q4 FY16.

During Q2 FY17, the Company’s inventories increased 26.2% to $89.53 million from $70.94 million in Q4 FY16. During Q2 FY17, Blue Buffalo’s accounts payable increased 45.9% to $51.41 million from $35.24 million in Q4 FY16.

For the reported quarter, the Company’s long-term debt increased 3.2% to $391.62 million from $379.18 million in Q4 FY16. During H1 FY17, Blue Buffalo’s cash provided by operating activities increased 15.4% to $63.04 million from $54.65 million in H1 FY16.

Outlook

For FY17, Blue Buffalo expects revenue to be in the range of $1.24 billion – $1.27 billion and estimates adjusted diluted EPS to be in the band of $0.91 – $0.94.

On July 31, 2017, the Company’s Board of Directors approved a $50 million share repurchase program, which the Company expects to complete in the fiscal year 2017.

Stock Performance

On Tuesday, August 29, 2017, the stock closed the trading session at $25.68, slightly up 0.31% from its previous closing price of $25.60. A total volume of 1.20 million shares have exchanged hands. Blue Buffalo Pet Products’ stock price surged 14.80% in the last one month, 9.32% in the past three months, and 3.88% in the previous six months. Furthermore, since the start of the year, shares of the Company have gained 6.82%. The stock is trading at a PE ratio of 35.72 and currently has a market cap of $5.08 billion.

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