Snyder’s-Lance, Inc. (Nasdaq-GS: LNCE) stock surged in the second half of December 14th, 2017 trading session, delivering an overall returns of over 12.7% in December 14th, 2017 (Source: Google finance). The group has been approached by Campbell Soup Co to be hired as an investment bank to pursue their potential sale. LNCE stock enhanced over 24.9% in the last four weeks and has a 1.4% dividend yield.
Snyder’s-Lance delivered an overall net revenue from continuing operations rise of 3.7% yoy in the third quarter of 2017 while core branded rose 4.9% on a year over year basis. Their branded net revenue rose 4.8% as a result of a 3.5% rise in their Allied Brands and a 4.9% rise in Core Brands. The Core Brand net revenue was driven by growth in Late July®, Snack Factory® Pretzel Crisps®, Lance®, Snyder’s of Hanover®, Cape Cod®, and KETTLE® Chips, which offset weakness in Emerald®, Pop Secret®, and Kettle Brand®. Net revenue from the Partner Brand category enhanced 0.2% while net revenue from the Other category lost 1.0%, against pcp.
The GAAP net loss attributable to the group from continuing operations fell to $57.7 million, or $0.60 per diluted share, from a net income of $25.7 million, or $0.26 per diluted share, in the third quarter of 2016. The group has declared a regular cash dividend on the Company’s common stock of $0.16 per share, which is payable on November 28, 2017 to shareholders of record at the close of business November 20, 2017.
The group’s Gross margin was strong at 37.1% of net revenue against 36.8% in the prior corresponding period. For 2018, the group is aiming to make progress in their performance transformation plan and unlock the considerable potential of their branded portfolio to drive better total shareholder return.
For fiscal 2017, the group forecasts a net revenue to be in the range of $2,205 million and $2,255 million, while adjusted EBITDA is expected to be in the range of $305 million and $320 million. Earnings per diluted share, excluding special items, is forecasted to be in the range of $1.12 and $1.17.Capital expenditures is expected to be in the range of $75 million to $85 million.