Blue Buffalo Wows With Earnings and Guidance
Blue Buffalo Pet Products reported better-than-expected first-quarter financial results after the markets closed on Tuesday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Blue Buffalo Pet Products Inc. (NASDAQ: BUFF) reported its first-quarter financial results after the markets closed on Tuesday. The company posted $0.19 in earnings per share (EPS) on $279.8 million in revenue. That compares to consensus estimates of $0.18 in EPS on revenue of $275.6 million. In the same period of last year, the company posted EPS of $0.15 and $248.8 million in revenue.
During this quarter, net sales of Dry Foods increased $25.2 million, or 12.4%, to $229.2 million while net sales of Wet Foods, Treats and Other Products increased $5.8 million, or 13.1%, to $50.6 million.
In terms of guidance for the 2016 full year, Blue Buffalo expects to deliver EPS in the range of $0.73 to $0.74 and net sales of $1.125 billion to $1.140 billion. The consensus estimates are calling for $0.74 in EPS on $1.14 billion in revenue.
On the books, cash and cash equivalents totaled $265.1 million at the end of the first quarter, compared to $224.3 million at the end of 2015.
[nativounit]
Blue Buffalo CEO Kurt Schmidt commented:
We’re off to a great start for the year. I’m pleased with both our top-line and bottom-line performance for the first quarter which was consistent with our expectations. More importantly, we continue to gain share and invest in our future. As a result of our strong year-to-date performance, we are raising the low-end of our revenue and EPS guidance for the full year.
Shares of Blue Buffalo were trading up 7.7% to $25.71 on Wednesday, with a consensus analyst price target of $26.14 and a 52-week trading range of $15.19 to $28.80.
Contact [email protected] for any questions or corrections.
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
