Bob Evans Farms Q4 Profit Down, But Tops View

(RTTNews) - Bob Evans Farms Inc. (BOBE) Tuesday reported a profit for the fourth quarter that more than halved from last year, hurt largely by operating losses at its restaurant businesses. Nonetheless, both earnings and revenue for the quarter came in ahead of Wall Street's expectations.

Columbus, Ohio-based Bob Evans' fourth-quarter profit dropped to $5.6 million or $0.24 per share from $13.0 million or $0.53 per share a year ago.

Excluding items, adjusted earnings rose to $13.2 million or $0.56 per share from $11.8 million or $0.48 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Bob Evans' sales for the fourth quarter rose to $332.39 million from $326.37 million a year ago. Analysts had a consensus revenue estimate of $330.97 million for the fourth quarter.

Sales at Bob Evans Restaurants segment rose 3.1 percent to $238.2 million, while BEF Foods' sales increased 1.2 percent to $94.2 million. Restaurant segment posted an operating loss of $9.2 million compared to a profit of $2.2 million last year, while BEF Foods' operating profit rose to $10.1 million from $2.1 million a year ago.

Looking forward to the fiscal year 2016, the company expects adjusted earnings of $1.75 to $1.95 per share and sales of $1.34 billion to $1.41 billion. Analysts currently expect earnings of $1.86 per share on revenues of $1.37 billion for 2016.

Last week the company announced plans to pursue a strategic transaction for a select portion of its restaurant properties, which may take the form of either a sale-leaseback or a tax-free REIT conversion and spin-off.

BOBE closed Tuesday's trading at $47.50, down $0.35 or 0.73%, on the Nasdaq. The stock, however, gained $1.83 or 3.85%, in the after-hours trade.