Berry Plastics Group Earnings: Here’s Why Investors are Ambivalent Now

Berry Plastics Group Inc (NYSE:BERY) 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.

Berry Plastics Group Inc Earnings Cheat Sheet

Results:

Revenue: Decreased 1.69% to $1.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Berry Plastics Group Inc reported adjusted EPS income of $0.35 per share. By that measure, the company missed the mean analyst estimate of $0.37. It missed the average revenue estimate of $1.25 billion.

Quoting Management: “During the June 2013 quarter the Company achieved an Operating EBITDA record for any June quarter, despite the sustained pressure from continued soft consumer demand. The year-over-year Operating EBITDA margin improvements of 1 percent were achieved primarily through productivity, strategic cost reduction actions taken, and sourcing savings.” said Jon Rich, Chairman and CEO of Berry Plastics.

Key Stats (on next page)…

Revenue increased 6.17% from $1.15 billion in the previous quarter. EPS increased 25% from $0.28 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.38 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $1.07 to a profit of $1.11 over the last ninety days.

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