Berry Plastics Group (BERY) Tops Q3 EPS by 10c, Miss on Revenues

Berry Plastics Group (NYSE: BERY) reported Q3 EPS of $0.93, $0.10 better than the analyst estimate of $0.83. Revenue for the quarter came in at $1.91 billion versus the consensus estimate of $1.93 billion.

Outlook

“Today, we are reaffirming our fiscal year 2017 projected cash flow from operations of $925 million and adjusted free cash flow of $550 million which includes the $925 million of cash flow from operations partially offset by net capital expenditures of $265 million as well as $110 million of payments under the tax receivable agreement (“TRA”). The $110 million of payments related to the TRA includes $60 million that was made in the first fiscal quarter and an anticipated $50 million payment to be made at the end of the September 2017 quarter.

Looking ahead, we will continue our focus on reducing our leverage ratio to a goal of below 4, on or before the end of fiscal 2017. Additionally, we remain excited about our recent acquisition of AEP, and the results to date have validated our expectations of the synergy potential and scale advantages through the combined businesses. Based on our progress to date, we are increasing our annual cost synergy target for the AEP acquisition from our initial $50 million and revised $70 million to now, $80 million,” stated Salmon.

For earnings history and earnings-related data on Berry Plastics Group (BERY) click here.

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