Snyder's-Lance Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

Snyder's-Lance (NAS: LNCE) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Snyder's-Lance beat expectations on revenues and missed estimates on earnings per share.

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


Gross margins contracted, operating margins shrank, net margins increased.

Revenue details
Snyder's-Lance reported revenue of $392.8 million. The nine analysts polled by S&P Capital IQ predicted a top line of $383.1 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $388.5 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
EPS came in at $0.17. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.21 for Q1 were 31% higher than the prior-year quarter's $0.16 per share.

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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 32.4%, 390 basis points worse than the prior-year quarter. Operating margin was 4.3%, 90 basis points worse than the prior-year quarter. Net margin was 3.6%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $402.1 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $0.98.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 69 members out of 81 rating the stock outperform, and 12 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Snyder's-Lance a green thumbs-up, and four 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 $23.75.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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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