Free Research Report as Pinnacle Foods’ Sales Rose 1.7%; Adjusted EPS Jumped 14%

Stock Monitor: Freshpet Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 7, 2018 / If you want access to our free earnings report on Pinnacle Foods Inc. (NYSE: PF), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PF. Pinnacle Foods reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The maker of Birds Eye frozen foods, Duncan Hines frosting and cake mixes, and Vlasic pickles outperformed top- and bottom-line expectations and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Freshpet, Inc. (NASDAQ: FRPT), which also belongs to the Consumer Goods sector as the Company Pinnacle Foods. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Pinnacle Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Pinnacle Foods’ net sales in the first quarter of 2018 increased 1.7% to $778.8 million compared to net sales of $766.1 million in Q1 2017. Strong underlying growth was driven by volume/mix of 2.7%, net price realization of 0.7% and favorable foreign currency translation of 0.1%. The earlier timing of Easter added an additional 0.8% of growth. The Company’s reported numbers beat analysts’ estimates of $763.2 million

During Q1 2018, Pinnacle Foods’ gross profit decreased 2.0% to $206.4 million, or 26.5% of net sales compared to gross profit of $210.6 million, or 27.5% of net sales, in Q1 2017. The Company’s adjusted gross profit for the reported quarter declined 3.1% to $211.2 million on a y-o-y basis and, as a percentage of net sales, adjusted gross profit margin declined approximately 130 basis points(bps) to 27.1%.

For Q1 2018, Pinnacle Foods’ earnings before interest and taxes (EBIT) advanced 4.0% to $115.7 million, or 14.9% of net sales, compared to $111.2 million, or 14.5% of net sales, in Q1 2017. This performance largely reflected the lower operating expenses in the reported quarter as well as items affecting comparability in the prior year’s corresponding period. The Company’s reported quarter adjusted EBIT increased 1.0% to $121.6 million, or 15.6% of net sales, compared to $120.5 million, or 15.7% of net sales, in the year ago same period.

Pinnacle Foods’ effective tax rate (ETR) for Q1 2018 declined to 23.1% compared to 24.1% in Q1 2017, primarily reflecting the impact of US tax reform enacted in December 2017. The Company’s adjusted ETR for the reported quarter declined to 24.3% versus 32.5% in the prior year’s comparable quarter.

For Q1 2108, Pinnacle Foods reported net earnings of $56.9 million, or $0.48 per diluted share, compared to $23.1 million, or $0.19 per diluted share, in Q1 2017. The Company’s reported quarter adjusted net earnings advanced 14.0% to $0.57 per diluted share compared to $0.50 per diluted share in the prior year’s same quarter, with the growth reflecting lower adjusted ETR and the higher adjusted EBIT. Pinnacle Foods’ earnings surpassed Wall Street’s estimates of $0.56 per share.

Segment Results

During Q1 2018, Pinnacle Foods’ net sales for the Frozen segment advanced 7.5% to $344.9 million compared to $320.9 million in Q1 2017, reflecting favorable volume/mix of 5.7%, net price realization of 2.5%, and favorable foreign currency translation of 0.3%.

EBIT for the Frozen segment increased 5.5% to $53.7 million in Q1 2018, compared to $50.9 million in Q1 2017, largely reflecting higher net sales, productivity, and lower marketing and advertising spending. The segment’s adjusted EBIT increased 11.8% to $58.0 million in the reported quarter compared to $51.9 million in the year ago corresponding period.

For Q1 2018, Pinnacle Foods’ net sales in the Grocery segment increased 0.6% to $261.0 million compared to $259.4 million in Q1 2017, reflecting favorable volume/mix of 0.6% and the earlier timing of Easter, which added 0.3% of growth. EBIT for the Grocery segment declined 4.0% to $49.7 million compared to $51.8 million in the year ago same period, primarily reflecting higher inflation.

Pinnacle Foods’ net sales for the Boulder segment increased 0.5% to $97.8 million in Q1 2018 compared to $97.3 million in Q1 2017. This performance reflected favorable volume/mix of 3.1% partially offset by unfavorable net price realization of 2.6%. EBIT for the Boulder segment increased to $11.9 million in the reported quarter versus $6.7 million in the prior year’s comparable period.

During Q1 2018, Pinnacle Foods’ net sales for the Specialty segment declined 15.0% to $75.2 million compared to $88.5 million in 2017, largely reflecting a 13.1% net sales decline from the AJ Exit and lower volume/mix of 2.1%. EBIT for the Specialty segment declined 7.6% to $8.2 million in the quarter compared to $8.9 million in the year-ago same period, attributed to lower net sales and input cost inflation.

Cash Matters

During Q1 2018, Pinnacle Foods’ net cash provided by operating activities increased to $121.6 million compared to $63.0 million in Q1 2017, primarily reflecting higher net earnings, negative impact associated in Q1 2017 with the cash settlement of hedges associated with debt refinancing and favorable working capital.

Outlook

Pinnacle Foods reaffirmed its full year 2018 adjusted earnings outlook in the range of $2.85 to $2.95 per share. The Company’s underlying net sales for FY18 are expected to grow ahead of category trends.

Pinnacle Foods is estimating adjusted ETR for the year to improve to a range of 24% to 25%. Capital expenditures for FY18 are expected in the band of $155 million to $165 million.

Stock Performance Snapshot

June 06, 2018 – At Wednesday’s closing bell, Pinnacle Foods’ stock declined 1.11%, ending the trading session at $63.47.

Volume traded for the day: 986.62 thousand shares.

Stock performance in the last month – up 0.76%; previous three-month period – up 10.94%; past twelve-month period – up 3.17%; and year-to-date – up 6.73%

After yesterday’s close, Pinnacle Foods’ market cap was at $7.58 billion.

Price to Earnings (P/E) ratio was at 32.83.

The stock has a dividend yield of 2.05%.

The stock is part of the Consumer Goods sector, categorized under the Food – Major Diversified industry. This sector was up 0.5% at the end of the session.

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