Blue Buffalo Wows Investors With Earnings and Guidance

By Chris Lange Updated Jan 13, 12:12PM EST · Published Mar 8, 4:32PM EST

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Blue Buffalo Wows Investors With Earnings and Guidance — © Thinkstock

Blue Buffalo Pet Products, Inc. (NASDAQ: BUFF) reported fourth quarter financial results after the markets closed Tuesday. The company had $0.16 in earnings per share (EPS) on $265 million in revenue compared to Thomson Reuters consensus estimates that called for $0.14 in EPS on $259.20 million in revenue.

In terms of guidance for the 2016 full year, the company expects to have EPS in the range of $0.72 to $0.74 on revenues in the range of $1.12 billion to $1.14 billion. There are consensus estimates that call for $0.70 in EPS on $1.13 billion in revenue.

Considering the success with its Heartland manufacturing plant, the company is announcing an expanded three-year, $200 million capital investment program to build two new manufacturing facilities as well as an R&D center.

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On the books, cash and cash equivalents totaled $224.3 million compared to $95.79 million in the same period from the previous year.

Kurt Schmidt, CEO of Blue Buffalo, commented:

I am pleased with our fourth quarter results. Blue Buffalo delivered a strong finish to a strong year. We continued to gain share, improve our margins and invest in new legs of growth. In addition, given the successful completion and ramp-up of our Heartland facility, we are announcing an expanded three-year, $200 million capital investment program to increase our manufacturing and R&D capabilities.

Shares of Blue Buffalo closed Tuesday down 4.7% at $18.56, with a consensus analyst rpice target of $24.86 and a 52-week trading range of $15.19 to $28.80. Following the release of the earnings report the stock was up 9% at $20.25 in the after-hours trading session.

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About the Author Chris Lange →

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.