Bemis (BMS) Misses Q2 EPS by 8c, Miss on Revenues; Offers FY17 EPS Outlook Below Consensus

Bemis (NYSE: BMS) reported Q2 EPS of $0.48, $0.08 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.03 billion.

OUTLOOK

Management expects adjusted diluted earnings per share to be in the range of $2.35 to $2.50 for the full year 2017. Management estimates GAAP diluted earnings per share to be in the range of $2.00 to $2.15 for the full year 2017, excluding the impact of items that cannot be reasonably predicted at this time, such as any charges associated with future actions taken to improve financial and operational performance.

Austen stated, “Our guidance reduction is a result of the impact of the sharp contraction and tough economic environment in Brazil. As consumers and retailers scale back, our volumes and mix of business suffer. While we are working to take costs out of our business, the unfavorable headwinds in Brazil will pressure our earnings during the balance of the year.”

Management expects full year 2017 cash from operations to be in the range of $400 to $425 million, primarily a result of revised earnings expectations. This guidance includes the planned impact from initial actions related to the 2017 Restructuring Plan, which is less than $5 million of cash expenditure during 2017.

Management expects capital expenditures for 2017 between $185 and $200 million to support projects underway. Management is evaluating future capital spending levels as part of its current comprehensive review of the business.

Management expects an effective income tax rate for 2017 of approximately 32 percent, which incorporates the new accounting standard for stock-based compensation.

GUIDANCE:

Bemis sees FY2017 EPS of $2.35-$2.50, versus the consensus of $2.55.

For earnings history and earnings-related data on Bemis (BMS) click here.

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