Snyder's-Lance Increases Sales but Misses Estimates on Earnings

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Snyder's-Lance (NAS: LNCE) reported earnings on Feb. 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Snyder's-Lance beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.

Gross margins dropped, operating margins improved, net margins grew.

Revenue details
Snyder's-Lance booked revenue of $421.9 million. The nine analysts polled by S&P Capital IQ predicted a top line of $412.3 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $285.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.16. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share on the same basis. GAAP EPS were $0.33 for Q3 against -$0.48 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.0%, 190 basis points worse than the prior-year quarter. Operating margin was 8.2%, 350 basis points better than the prior-year quarter. Net margin was 5.4%, 1,220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $401.7 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $1.63 billion. The average EPS estimate is $0.75.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 67 members out of 79 rating the stock outperform, and 12 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Snyder's-Lance a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Snyder's-Lance is outperform, with an average price target of $23.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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