Bob Evans Swings To Profit, Again Cuts Outlook; Stock Down 8%

(RTTNews) - Restaurant chain Bob Evans Farms Inc. (BOBE), Monday reported a swing to third-quarter profit from a loss last year, when it was hurt by discontinued operations. But the results missed Wall Street estimates due to the impact of harsh winter, higher sow costs and inefficiencies from the expansion of BEF Foods plant in Sulphur Springs, Texas.

Bob Evans again slashed its adjusted earnings outlook for 2014 and said current quarter results too were hurt by inclement weather. The announcement spooked investors, sending Bob Evans shares plunging 8 percent in after-hours trade on the Nasdaq.

Columbus, Ohio-based Bob Evans third-quarter net earnings of $5.7 million or $0.22 per share, compared with net loss of $55 million or $1.96 per share last year.

Results for the prior-year quarter included $80 million loss from discontinued operations.

Excluding items, adjusted earnings for the quarter were $7.8 million or $0.30 per share, compared with earnings of $15.8 million or $0.56 per share last year.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter slid to $340 million from $434.4 million last year. Analysts expected sales of $350.5 million for the quarter.

Same-store sales at its key Bob Evans Restaurants segment were a negative 1.8 percent for the quarter.

For fiscal 2014, Bob Evans now expect adjusted earnings of $1.60 to $1.75 per share, from a prior range of $2.20 to $2.30 per share, while sales are projected at $1.3 billion. Analysts currently expect earnings of $2.26 per share on sales of $1.36 billion for the year.

For fiscal 2015, Bob Evans expects net earnings of $2.80 to $3.00 per share, while analysts expect $2.90 per share.

The company raised long-term annual diluted earnings-per-share growth guidance range to 10 percent to 12 percent, up from prior range of 8 percent to 12 percent.

Bob Evans said its board has authorized up to $100 million of share repurchases for fiscal 2015.

The company's stock closed Tuesday at $51.74, up $0.79 or 1.55%, on a volume of 366 thousand shares on the Nasdaq. In after hours, the stock dropped $4.24 or 8.19% at $$47.50.