Hillshire Brands (HSH) Tops Q3 EPS by 10c

Hillshire Brands (NYSE: HSH) reported Q3 EPS of $0.46, $0.10 better than the analyst estimate of $0.36. Revenue for the quarter came in at $955 million versus the consensus estimate of $939.03 million.

“The tremendous progress we have made in strengthening our brands and reducing costs is unmistakable. Despite an unusually inflationary input cost environment, we meaningfully improved our core business fundamentals and have increased our operating margins. Underlying this performance is the work we have done to improve our capabilities in areas like innovation, pricing analytics and marketing, as well as our robust productivity programs,” said Sean Connolly, president and CEO of The Hillshire Brands Company.

“In addition to our base business momentum, we are beginning to leverage our balance sheet for additional value creation, with a focus on acquisitions. Overall, while I am pleased by another strong quarter, I am most encouraged that we have validated our original investment thesis and are well positioned to deliver strong returns over the long run,” added Connolly.

Outlook

The company now expects full-year sales growth in the low single digits and adjusted diluted EPS to be at the high end of the previously provided range. In the fourth quarter, the company expects margins to be lower than those achieved year to date given sharply higher input costs and planned investments in merchandising to support the important grilling season.

Corporate expenses are now expected to be between $40-$45 million, excluding significant items and mark-to-market adjustments. The company continues to expect an adjusted effective tax rate of 35-36% and continues to expect net interest expense of approximately $40 million.

For earnings history and earnings-related data on Hillshire Brands (HSH) click here.

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