Why Blue Buffalo Is Soaring

Blue Buffalo Pet Products Inc BUFF shares are up 22.09 percent at $22.66 on Wednesday.

The rise comes on back of a positive fourth-quarter and full-year 2015 results.

Q4 Highlights

Highlights from the results include net sales up 11.4 percent at $265 million; net income down 54.4 percent at $10 million, but adjusted net income up 35.2 percent at $31 million; adjusted EBITA up 28.8 percent at $56 million; diluted EPS down 54.4 percent at $0.05 and adjusted diluted EPS up 35.2 percent at $0.16.

Full-Year Highlights

For the full year, net sales came in up 12 percent at $1,017; net income was down 12.3 percent at $89 million, but adjusted net income came in up 14.9 percent at $122 million; adjusted EBITDA was up 14.8 percent at $222 million; diluted EPS was down 12.4 percent at $0.45, but adjusted diluted EPS up 14.8 percent at $0.62.

Blue Buffalo CEO Kurt Schmidt commented, "I am pleased with our fourth quarter results. Blue Buffalo delivered a strong finish to a strong year. We continued to gain share, improve our margins and invest in new legs of growth."

Looking forward, the 2016 outlook includes net sales of $1,120 million to $1,140 million, and an adjusted diluted EPS between $0.72 and $0.74.