Bob Evans Farms Q3 Rsuults Miss Estimates; Cuts FY15 Outlook

(RTTNews) - Bob Evans Farms, Inc. (BOBE) reported net income for the third quarter of $5.9 million or $0.25 per share, compared to $6.2 million or $0.24 per share for the year-ago quarter.

Excluding items, adjusted net income for the third quarter was $14.3 million or $0.60 per share, compared to $8.2 million or $0.31 per share in the prior year quarter.

Net sales for the third quarter rose to $257.18 million from $340.13 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.70 per share on revenue of $359.33 million for the third quarter. Analysts' estimates typically exclude special items.

For the fiscal year 2015, the company now forecasts net sales of $1.34 billion to $1.36 billion and adjusted earnings of $1.40 to $1.60 per share. Previously, the company forecast net sales of $1.35 billion to $1.37 billion and adjusted earnings of $1.90 to $2.10 per share. The company attributed the lowering of guidance mainly to the underperformance of its restaurant business in the third quarter.

Analysts currently expect the company to earn $1.97 per share on revenue of $1.36 billion for the fiscal year 2015.

Bob Evans also said that it will not pursue a sale or spin-off of the BEF Foods business segment at this time.

Bob Evans also said that it has retained JP Morgan to assist with continued evaluation of strategic alternatives for the company's real estate.