Berry Plastics Group (BERY) Stock Down Ahead of Earnings Results

Berry Plastics Group (BERY) stock closed down on Thursday ahead of the company's 2015 fourth quarter earnings results tomorrow.
By Amanda Albright ,

NEW YORK (TheStreet) -- Berry Plastics Group (BERY) - Get Report will report its 2015 fourth quarter earnings results before the market open on Friday morning.

The Evansville, IN-based company provides plastic consumer packaging and engineered materials.

Analysts surveyed by Thomson Reuters are expecting the company to report earnings of 46 cents per share on revenue of $1.25 billion for the most recent quarter.

Berry Plastics reported earnings of 35 cents per share on revenue of $1.3 billion in the fourth quarter of 2014.

Shares of Berry Plastics closed up by 2.67% to $32.80 on Thursday. 

Separately, TheStreet Ratings team rates BERRY PLASTICS GROUP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate BERRY PLASTICS GROUP INC (BERY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 50.00% to $180.00 million when compared to the same quarter last year. In addition, BERRY PLASTICS GROUP INC has also vastly surpassed the industry average cash flow growth rate of -12.00%.
  • BERRY PLASTICS GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BERRY PLASTICS GROUP INC increased its bottom line by earning $0.51 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $0.51).
  • BERY, with its decline in revenue, underperformed when compared the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for BERRY PLASTICS GROUP INC is rather low; currently it is at 24.42%. Regardless of BERY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.04% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Containers & Packaging industry. The net income has significantly decreased by 186.7% when compared to the same quarter one year ago, falling from $15.00 million to -$13.00 million.
  • You can view the full analysis from the report here: BERY

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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