Bemis (BMS) Tops Q2 EPS by 7c, Revenues Beat; Lowers FY18 EPS Mid-Point Outlook

Bemis (NYSE: BMS) reported Q2 EPS of $0.68, $0.07 better than the analyst estimate of $0.61. Revenue for the quarter came in at $1.03 billion versus the consensus estimate of $1.02 billion.

“We delivered strong earnings this quarter and continued to make progress on Agility, which is our plan to fix, strengthen, and grow our business,” said William F. Austen, Bemis Company’s President and Chief Executive Officer. “Operating profit increased $20 million compared to last year, with strong improvement in all of our business segments. In our U.S. business, operating profit increased nearly $10 million as a result of the benefits of Agility and strong operations within our factories. In our Latin America business, despite currency translation headwinds, operating profit increased $6 million due to continued variable and fixed cost improvements made in light of the challenging economic environment in Brazil. Our teams in Brazil also did an excellent job mitigating the impact from the nationwide trucker strike during the quarter. And in our Rest of World business, operating profit increased nearly $4 million driven by strong organic sales growth of healthcare packaging.”

Austen continued, “We delivered a solid first half in 2018, increasing adjusted earnings per share by $.25 over the prior year. Our teams across the globe are committed to improving our business for the long-term.”

OUTLOOK

Management revised its full year 2018 adjusted diluted earnings per share guidance to the range of $2.75 to $2.85 compared to the previous range of $2.75 to $2.90.

Austen stated, “We are trimming the top of our earnings per share guidance range by $.05 on account of headwinds from currency translation. During the second quarter, the Brazilian Real and Argentine Peso devalued; our balance of year plan assumes that current rates remain and adversely impact translation of profits. In line with our outlook at the beginning of the year, we continue to expect full year operating profit margin in our Latin America business to increase 100 basis points as compared to last year.”

Austen further commented, “We continue to execute Agility to deliver cost savings, and we remain focused on driving our Agile Lane initiative which aligns our people, processes, and assets to excel at short-run business.”

Management revised its full year 2018 cash from operations guidance to the range of $410 to $430 million, as compared to the previous range of $420 to $450 million, on account of currency and working capital due to the pace of planned inventory reductions. Expected restructuring and related cash costs are included in management’s guidance range and remain unchanged for 2018 at $50 million.

Management continues to expect capital expenditures for 2018 between $150 and $160 million.

GUIDANCE:

Bemis sees FY2018 EPS of $2.75-$2.85, versus the consensus of $2.78.

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

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