Snyder’s-Lance (NASDAQ:LNCE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.26%.
Snyder’s-Lance Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 9.09% to $0.24 in the quarter versus EPS of $0.22 in the year-earlier quarter.
Revenue: Rose 9.94% to $439.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Snyder’s-Lance reported adjusted EPS income of $0.24 per share. By that measure, the company missed the mean analyst estimate of $0.28. It missed the average revenue estimate of $446.38 million.
Quoting Management: “We are pleased with our performance in the second quarter of 2013 as Snyder’s-Lance continues to execute on the fundamentals of our strategic plan to build a stronger, premium and differentiated snack foods company,” commented Carl E. Lee, Jr., President and Chief Executive Officer. “Growing our top line at 10% year over year through a combination of acquired and organic growth demonstrates our team is capable of winning on many fronts. Our plan of emphasizing core brands, while expanding margins for our Private Brands and other products over time, is proving to be a solid path forward for creating shareholder value. As previously discussed, we increased our investment in marketing and advertising during the second quarter to build brand awareness and drive sales in the second half of the year. During the quarter, we stepped up our advertising spending to launch a new television advertising campaign for Snyder’s of Hanover® pretzels. We also increased social media promotional activities for the 100-year anniversary of the Lance® brand, a significant milestone for our company. We continued to benefit from our acquisition of Snack Factory® Pretzel Crisps® which posted significant year over year revenue and market share gains. Net revenue for our core branded products was up 22% for the second quarter, largely driven by acquired volume. In addition, all of these core brands posted market share gains for full year 2013. We expect solid sales momentum in the second half of 2013 as our core brand advertising, marketing and promotional efforts begin to influence retail sales.”
Key Stats (on next page)…