Pinnacle Foods (PF) Reports In-Line Q3 EPS, Miss on Revenues; Reaffirms FY17 EPS Guidance

Pinnacle Foods (NYSE: PF) reported Q3 EPS of $0.58, in-line with the analyst estimate of $0.58. Revenue for the quarter came in at $749.81 million versus the consensus estimate of $753.28 million.

The Company maintained its guidance for Adjusted diluted EPS for 2017 in a range of $2.55 to $2.60, and continues to expect to be at the low end of the range, reflecting the inclusion of the full-year impact of the discrete items and hurricanes. This outlook represents growth versus year-ago approaching 19% and includes the following assumptions:

• The benefit of the 53rd week is expected to add approximately 1% to net sales and $0.03 to Adjusted Diluted EPS for the year. This impact will benefit the fourth quarter of 2017.
• Input cost inflation for the year is now estimated to be approximately 3.0%, reflecting higher than previously-expected transportation expense.
• Productivity for the year is now estimated to slightly exceed 4.0% of cost of products sold, excluding Boulder Brands acquisition synergies of at least $15 million that will benefit both gross margin and SG&A overhead.
• The discrete items that impacted performance through the third quarter are expected to impact fourth quarter Adjusted diluted EPS by approximately $0.03.
• Net interest expense is now forecasted at approximately $121 million.
• Adjusted ETR for the year, including the benefit of the new accounting standard for stock-based compensation, is now estimated to be approximately 32.5%.
• The weighted average diluted share count for the year continues to be estimated at approximately 120 million shares.
• Capital expenditures for the year are now estimated to be approximately $100 million, excluding the $37.5 million acquisition of the frozen warehouse and packaging facility in Beaver Dam, Wisconsin.

GUIDANCE:

Pinnacle Foods sees FY2017 EPS of $2.55-$2.60, versus the consensus of $2.55.

For earnings history and earnings-related data on Pinnacle Foods (PF) click here.

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