NEW YORK (TheStreet) -- Shares of Bob Evans Farms (BOBE) were surging 6.04% to $41.03 in late-afternoon trading on Wednesday as the New Albany, OH-based food service, processing and retail company reported fiscal 2017 first quarter earnings that beat analysts expectations and increased its full-year guidance.
Before today's market open, Bob Evans posted earnings of 48 cents per share, surpassing Wall Street's projected 44 cents per share. Revenue came in at $306.3 million, below consensus estimates of $310.92 million.
For the 2016 first quarter, the company earned 51 cents per share on revenue of $321.71 million.
Bob Evans raised its 2017 earnings outlook to be in the range of $2.05 per share and $2.20 per share, up from its prior estimates of $2 to $2.15 per share. The company expects 2017 revenue to be between $1.28 billion and $1.33 billion.
Wall Street is looking for 2017 earnings of $2.06 per share and $1.3 billion in revenue.
The company attributed its slump in income during the quarter to lower sales and an "incremental investment in labor hours," the company said in a statement.
Additionally, Bob Evans' CEO Saed Mohseni said earlier today that he's considering "all options" for the company, which could include a possible split of its restaurant chain business and its packaged foods unit.
About 1.76 million of the company's shares have changed hands so far today vs. its average volume of 160,610 shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate BOB EVANS FARMS as a Hold with a ratings score of C. 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 revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.
You can view the full analysis from the report here: