Stock Monitor: Cal-Maine Foods Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 09, 2018 / Active-Investors.com has just released a free earnings report on Blue Buffalo Pet Products, Inc. (NASDAQ: BUFF). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BUFF. Blue Buffalo Pet Products reported its fourth quarter and fiscal 2017 operating and financial results on February 23, 2018. The Pet Food Company reported better than expected results and announced merger agreement with General Mills. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Cal-Maine Foods, Inc. (NASDAQ: CALM), which also belongs to the Consumer Goods sector as the Company Blue Buffalo Pet Products. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Blue Buffalo Pet Products 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:
Earnings Highlights and Summary
For the three months ended December 31, 2017, Blue Buffalo's net sales rose 14.2% to $337.0 million compared to net sales of $295.1 million, driven primarily by volume growth. The Company's reported numbers beat analysts' estimates by $18.3 million.
During Q4 2017, Blue Buffalo's net sales of Dry Foods increased 10.8% on a y-o-y basis to $265.9 million while net sales of Wet Foods, Treats, and Other Products surged 28.9% to $71.1 million.
For Q4 2017, Blue Buffalo's gross profit grew 15.1%, to $151.9 million and gross margin was 45.1%, up 40 basis points compared to 44.7% in Q4 2016. The increase in gross margin was driven primarily by favorable product mix and supply chain efficiencies, which were partially offset by higher distribution costs. The Company's selling, general, and administrative (SG&A) expenses increased 4.4% to $75.0 million. Adjusted SG&A, which excluded litigation expenses and costs incurred in preparing for Blue Buffalo's public offerings, increased 6.5% on a y-o-y basis, primarily due to the Company's ongoing investment in advertising and marketing.
Blue Buffalo's net income totaled $53.6 million, or $0.27 per diluted share, in Q4 2017 compared to $34.8 million, or $0.17 per diluted share, in Q4 2016. The Company's adjusted net income, excluding litigation expenses and costs incurred in preparing for Blue Buffalo's public offerings, rose 50.2% to $53.5 million in the reported quarter compared to $35.6 million in the prior year's corresponding quarter. The Company's adjusted earnings per diluted share soared 51.4% to $0.27 for Q4 2017 compared to $0.18 in Q4 2016, and came in ahead of Wall Street's estimates of $0.25 per share.
For the year ended December 31, 2017, Blue Buffalo's net sales advanced 10.9% to $1.28 billion compared to $1.15 billion in FY16, primarily driven by volume growth.
For FY17, Blue Buffalo's net income totaled $193.5 million, or $0.97 per diluted share, compared to $130.2 million, or $0.65 per diluted share, in FY16. The Company's adjusted net income came at $194.8 million, or $0.98 per diluted share, compared to $156.8 million, or $0.79 per diluted share, in FY16.
Impact of Tax Reform
Blue Buffalo's net income for Q4 2016 and FY17 increased by $5.4 million, due to the remeasurement of deferred taxes in connection with the reduction in the corporate statutory income tax rate from 35% to 21, due to the enactment of The Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017.
During FY17, Blue Buffalo's net cash provided by operating activities was $193.9 million compared to $127.2 million in FY16. The Company's cash and cash equivalents were $282.2 million as of December 31, 2017, compared to $292.7 million as of December 31, 2016.
Merger Agreement with General Mills
In a separate press release issued on February 23, 2018, Blue Buffalo announced that it has entered into a definitive merger agreement with General Mills, under which General Mills, will acquire Blue Buffalo for $40.00 per common share, in cash, or an enterprise value of approximately $8.0 billion. In light of this announcement, Blue Buffalo did not update financial guidance and also did not hold its investor conference call.
Stock Performance Snapshot
April 06, 2018 - At Friday's closing bell, Blue Buffalo Pet Products' stock was marginally down 0.03%, ending the trading session at $39.92.
Volume traded for the day: 3.69 million shares, which was above the 3-month average volume of 3.10 million shares.
Stock performance in the last month – up 0.08%; previous three-month period – up 22.45%; past twelve-month period – up 71.40%; and year-to-date – up 21.74%
After last Friday's close, Blue Buffalo Pet Products' market cap was at $7.80 billion.
Price to Earnings (P/E) ratio was at 39.88.
The stock is part of the Consumer Goods sector, categorized under the Food - Major Diversified industry.
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