Annie’s Q4 Profit Soars (BNNY)

Natural and organic food maker, Annie’s Inc (NYSE: BNNY) reported late on Monday that fiscal second quarter net income surged due to higher sales, a lower tax rate and favorable comparables. In the same quarter of last fiscal year, the Company had to recall frozen pizza, which put pressure on the bottom line. Shares ticked higher in extended trading hours as its guidance for the new fiscal year came in-line with Street’s estimation. For the fiscal fourth quarter ended March 31, the Berkeley, California-based Company reported a profit of $4.2 million or 24 cents a share up from net income of $58,000 or 5 cents a share, in the year-earlier quarter. Stripping out onetime items, the Company earned 29 cents a share up from 24 cents a share, in the same quarter of last year. Revenue soared 23% to $52.7 million from $43 million, driven by meals and snacks sales. Analysts’ consensus estimate was for earnings of 28 cents a share on revenue of $50.3 million, according to a data compiled by FactSet. Commenting over the results, Annie’s CEO John Foraker said to analysts in a conference call that more and more consumers are tilting towards natural and organic foods, adding that company will benefit further as its leading brands have created a niche for themselves. The Company said that it intends to expand its distribution network, promote its brand and introduce new products, in order to gain traction. For the recently concluded quarter, Annie’s net income stood at $11.6 million or 65 cents a share compared to $290,000 or 26 cents a share, in the last fiscal year. Revenue climbed 20% to $179 million from $141.3 million. For the new fiscal year, the Company anticipates adjusted earnings of 97 cents to $1.01 a share, on assumption that revenue would grow by 18 to 20%. That translates into revenue of $200.6 million to $204 million. Analysts’ consensus estimate was for earnings of $1 a share on revenue of $201.4 million. The stock edged up 0.53% to $41.90 in late trading after climbing 6.41% in regular trading hours.