Snyder’s-Lance Q1 earnings miss Wall Street expectations

Charlotte-based snackmaker Snyder’s-Lance reported flat first quarter earnings Friday that missed analysts’ expectations, but sales were up from a year ago thanks in part to growth of its “better-for-you” snacks.

For the first three months ending April 4, Snyder’s-Lance reported earnings of $12 million, or 17 cents a share, matching profit in the first quarter of 2014. Analysts surveyed by Bloomberg had forecasted first quarter 2015 earnings to be 19 cents a share.

First quarter sales were $402 million, up 8 percent over the same period last year.

“We are pleased with our good start to the year with healthy top line growth and earnings that met our expectations,” Carl Lee, the company’s president and CEO, said in a securities filing.

Lee said compared with last year, this year’s first quarter earnings were “skewed by the difference in the tax rate for last year,” which provided a 2 cents-a-share advantage to last year.

Last year, which Lee has called “transformative,” included a number of deals for Snyder’s-Lance as it expanded its foothold in the healthier snack market to meet evolving consumer demands.

About a year ago, the company announced the sale of its Private Brands business, which makes cookies and crackers, and the after-tax gain from the sale was a boost to yearly profits. Last May, the company also bought Baptista’s Bakery, a Wisconsin private-label baked snack manufacturer known for its “better-for-you” snacks.

Last November, the company increased its investment in an organic chip company called Late July Snacks. Earlier this year, the company announced a new division called Clearview Foods, which is focused on healthier snacks, and an expansion into the gluten-free industry.

Lee said Friday that its healthier snacks and premium products, such as Pretzel Crisps and Lance Gluten Free Sandwich Crackers, are “working well, delivering solid sales and financial results.”

Snyder’s-Lance upped its earnings guidance for 2015, calling for full-year earnings per share to be from $1.11 to $1.19, up from a previous estimate of $1.09 to $1.19. Analysts surveyed by Bloomberg forecast full-year earnings of $1.15.

This story was originally published May 8, 2015 at 7:33 AM with the headline "Snyder’s-Lance Q1 earnings miss Wall Street expectations."