Bemis Earnings: Here’s Why the Stock is Up Now

Bemis Company, Inc. (NYSE:BMS) delivered a profit and beat Wall Street’s expectations, BUT 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 up 0.75%.

Bemis Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.96% to $0.61 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Decreased 1.19% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bemis Company, Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.59. It missed the average revenue estimate of $1.32 billion.

Quoting Management: “This quarter, we closed the last of the nine facilities in our facility consolidation program, achieved our highest gross margin since 2009, and reduced working capital levels,” said Henry Theisen, Bemis Company’s President and Chief Executive Officer. “Our focused efforts to improve our long term sales mix and return on invested capital trends have been effective. Stronger unit volumes in high barrier liquid packaging reflect the trend toward flexible pouches in the United States. We continue to make strategic growth investments in both Latin America and China which we expect to deliver sales growth in our Global Packaging segment beginning in 2014. We achieved double digit growth in adjusted earnings per share this quarter in spite of Brazilian currency headwinds and continued weakness in our European pressure sensitive graphic products market.”

Key Stats (on next page)…

Revenue increased 3.35% from $1.26 billion in the previous quarter. EPS increased 15.09% from $0.53 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.65. For the current year, the average estimate has moved down from a profit of $2.39 to a profit of $2.38 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)