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Does The Street Have Snyder's-Lance Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 1:26PM

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Checking expectations

Snyder's-Lance (Nasdaq: LNCE) is expected to report Q1 earnings on May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Snyder's-Lance's revenues will grow 9.9% and EPS will grow 47.1%.

The average estimate for revenue is $431.8 million. On the bottom line, the average EPS estimate is $0.25.

Revenue details
Last quarter, Snyder's-Lance chalked up revenue of $419.8 million. GAAP reported sales were 1.9% higher than the prior-year quarter's $412.1 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.29. GAAP EPS of $0.11 for Q4 were 67% lower than the prior-year quarter's $0.33 per share.

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

Recent performance
For the preceding quarter, gross margin was 34.6%, 60 basis points worse than the prior-year quarter. Operating margin was 8.0%, 170 basis points worse than the prior-year quarter. Net margin was 1.9%, 350 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.79 billion. The average EPS estimate is $1.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 65 members out of 77 rating the stock outperform, and 12 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 $26.88.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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