Snyder's-Lance Sees Q1 Result Below Estimates, Cuts FY17 View; Names Interim CEO

(RTTNews) - Snack food manufacturer Snyder's-Lance, Inc. (LNCE) Monday announced its preliminary first-quarter results, below market estimates, and revised down forecast for fiscal 2017. The company also announced the appointment of Brian Driscoll as interim Chief Executive Officer, succeeding Carl Lee, Jr.

For its first quarter, the company's attributable net income is expected to be in the range of $11 million to $12 million, or $0.11 to $0.12 per share. Adjusted attributable net income is expected to be in the range of $13 million to $14 million, or $0.13 to $0.14 per share.

Adjusted EBITDA in the first quarter is expected to be in the range of $52 million to $54 million.

For the first quarter of 2017, the company expects net revenue in the range of $530 million to $532 million, an increase of approximately 18% to 19% from continuing operations in the first quarter of 2016.

On average, 9 analysts polled by Thomson Reuters expect earnings of $0.27 per share for the quarter on revenues of $551.17 million. Analysts' estimates typically exclude special items.

The higher anticipated revenues reflect two additional months of contribution from the Diamond brands. On a pro-forma basis, as if the transaction were completed on January 1, 2016, growth would have been approximately 1-3%. Snyder's-Lance legacy branded net revenue is expected to increase approximately 8% to 9%.

The company expects to report final results for its first quarter before the market opens on May 8.

Further, based on the year to date performance and the current outlook for the remainder of the year, the company revised its previous full-year expectations.

For the full-year of fiscal 2017, the Company now expects net revenue to be between $2.20 billion and $2.25 billion, adjusted EBITDA to be between $290 million and $315 million, and earnings per share from continuing operations, excluding special items, to be between $1.05 and $1.20. The company previously expected full-year 2017 net revenue to be between $2.25 billion and $2.29 billion, adjusted EBITDA to be between $330 million and $345 million, and earnings per share, excluding special items, to be between $1.32 and $1.42.

Analysts expect earnings of $1.38 per share on revenues of $2.27 billion for the year.

Further, Snyder's-Lance announced that its President and CEO, Carl E. Lee, Jr., has retired after 12 years of service to the Company. Brian Driscoll, former President and CEO of Diamond Foods and a current Director of Snyder's-Lance, has agreed to step in as interim CEO.

Driscoll has more than 35 years of experience in the food industry having served most recently as the President and CEO of Diamond Foods until its acquisition by Snyder's-Lance in February of 2016.

The company has announced that it will launch a national search for a permanent replacement to Lee. Driscoll is considered a strong candidate for that role, and will have full faith and confidence of the Board to develop and execute the Company's strategies until a permanent decision is made.