Bob Evans Farms Tops Q4 Expectations, Shares Rise

Shares of

surged over 2 percent in after-hours trading after the company reported better-than-expected results for its fiscal fourth quarter. The New Albany, Ohio-based company reported quarterly net income of $5.6 million, or $0.24 per share, down from $13.0 million, or $0.53 per share, in the year-ago period. Excluding items, adjusted net income from continuing operations climbed to $0.56 per share from $0.48 per share. Its net sales climbed 1.8 percent year-over-year to $332.4 million. However, analysts were expecting earnings of $0.41 per share on revenue of $330.97 million. The average estimate among 5 Estimize users was for earnings of $0.43 per share and revenue of $330.47 million. Its same-store sales rose 2.1 percent in the quarter. Bob Evans Restaurants' net sales gained 3.1 percent year-over-year to $238.2 million from $231.0 million. BEF Foods' net sales slipped 1.2 percent to $94.2 million from $95.3 million. During the quarter, Bob Evans Restaurants opened 4 new restaurants and closed 1 restaurant. Bob Evans repurchased 1.1 million shares to-date in fiscal 2016. Mark Hood, Chief Financial Officer said, "Fiscal 2015 was a year of significant change. Our reconstituted Board of Directors has helped us chart a new path forward focused on the turnaround of our restaurant and retail foods businesses, and establishing a corporate culture of efficiency. We enter fiscal 2016 with an improving outlook, a relentless focus on restoring our brand positioning, and a sense of urgency to improve our profits." The company projects fiscal year 2016 adjusted earnings of $1.75 to $1.95 per share. Bob Evans Restaurants same-store sales are expected to rise between 1.5 percent and 2.5 percent. Bob Evans Farms shares gained 2.32 percent to $48.60 in the after-hours trading session.