Berry Plastics Group Inc (NYSE:BERY) popped nearly nine percent higher yesterday, jumping $4.00 to reach $49.94 at the market close. The stock gained an additional 0.5 percent in extended afternoon trading. The global plastics company released its fourth-quarter and fiscal 2016 financial results before the opening bell, posting higher-than-expected earnings for the three-month period – which ended on October 1.
The plastics company’s stock traded approximately 6.8 million units through the day, considerably higher than its average volume of about 1.4 million shares per day.
The Evansville, Indiana-based company, which manufactures and markets plastic packaging and protective solutions for household, food, health care and industrial applications, reportedly earned 73 cents per share – on an adjusted basis – during the fourth quarter. Wall Street analysts, on average, were expecting the company to post earnings of just 59 cents per share.
Revenue, on the other hand, fell below expectations for the fourth quarter. Net sales amounted to $1.62 billion, a 44.6 percent increase from the same quarter in 2015. The consensus estimate projected revenue would reach $1.63 billion.
For the full fiscal year, Berry managed to hit a new record with $6.5 billion in net sales. In Fiscal 2015, the company generated about $4.9 billion in net revenues.
“Berry had a strong fourth fiscal quarter and full year as we exceeded our guidance for both free cash flow and operating EBITDA,” said Tom Salmon, the company’s President and Chief Operating Officer. “We generated solid adjusted free cash flow of $231 million in the quarter, bringing our adjusted free cash flow for the 2016 fiscal year to a record $517 million.”
Net income during Berry’s full fiscal year reached $236 million, a massive leap from the $86 million reported in the previous year. The company attributed the growth, at least partially, to its $2.45 billion all-cash acquisition of Avintiv from Blackstone Group LP last year.
The author does not have any positions in the above mentioned companies.