Bob Evans Q2 Earnings Top Views

Shares of

dropped over 4.5 percent in after-hours trading Tuesday after the company reported results for its fiscal second quarter. The New Albany, Ohio-based company reported quarterly net income of $6.4 million, or $0.29 per share, versus $6.0 million, or $0.25 per share, in the year-ago period. On an adjusted basis, non-GAAP earnings surged to $0.41 per share from $0.36 per share. Its net sales dropped 4.3 percent year-over-year to $230.7 million from $241.2 million. However, analysts were expecting earnings of $0.39 per share on revenue of $323.35 million. BEF Foods net sales rose 2.3 percent to $94.3 million in the quarter. Its same-store sales slipped 3.2 percent in the quarter. Operating income dropped to $13.3 million from $20.6 million. During the quarter, Bob Evans closed two restaurants. The company's board approved a $100 million increase in share repurchase authorization to $250 million, from a previous $150 million. The company's board also increased quarterly dividend by 9.7 percent to $0.34 per share. Executive Chairman Doug Benham said, "Our teams continue focusing their efforts on improvements in both of our businesses and execution of strategic initiatives. BEF Foods had another successful quarter with double-digit pounds sold percentage gains in both refrigerated dinner side dishes and sausage and is poised for a strong holiday selling season." Bob Evans affirmed FY16 adjusted earnings forecast of $1.85 to $2 per share. The company projects full-year same-store sales to decline 2.5 percent to 1.0 percent. Bob Evans shares fell 4.76 percent to $38.00 in the after-hours trading session.