Libbey (LBY) Misses Q3 EPS by 39c, Revenues Miss

Libbey (NYSE: LBY) reported Q3 EPS of ($0.22), $0.39 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $190.8 million versus the consensus estimate of $192.33 million.

"We were pleased to see many of the positive trends we observed across our business during the first half of the year continue during the third quarter, and we were able to deliver a fourth consecutive quarter of year-over-year net sales growth," said Chief Executive Officer William Foley. "Our efforts to improve product margins remain on track, driven by our new products and e-commerce initiatives along with favorable price and mix. We also believe price competition across the industry remains in balance, and we\'re maintaining our track record of outperforming foodservice industry sales growth, which gives us confidence that our market share is increasing."

Foley continued, "Our performance in the back half of this year has been impacted by increased storage costs associated with higher inventory, increased utility costs and production downtime to reduce inventory. We have actions in place to lower costs and our inventory levels while ensuring our best-in-class service for customers. In addition, currency translation, most notably in Latin America, had a significant impact on third-quarter results compared to our prior year. Despite these short-term impacts, we\'re entering the upcoming holiday selling season with great momentum behind our products in the marketplace, and we expect to enter fiscal year 2019 well positioned to stay on track with our long-term financial goals."

Outlook

Jim Burmeister, senior vice president, chief financial officer, commented, "Cost controls implemented across the business have enabled us to improve our full-year outlook for selling, general, and administrative expenses as a percent of net sales for the second consecutive quarter. These improvements will offset the higher operating costs previously mentioned and improve financial performance in the fourth quarter. We also expect capital spending to come in at the low end of our previously communicated range which will help offset higher inventory. In addition to our focus on improving operating performance, we remain committed to pursuing a capital allocation strategy that assigns greater priority to debt reduction while maintaining appropriate levels of investment in strategic initiatives that are expected to enhance long-term value for shareholders."

For earnings history and earnings-related data on Libbey (LBY) click here.

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Radnostix revenue falls 27% amid product recalls and FDA actions
• Wolfe Research upgrades Biogen, AbbVie on pipeline strength and valuation