Shares of Berry Plastics Group, Inc. (BERY) reached a new 52-week high of $28.99 on Nov 25, before closing a notch lower at $28.75. Berry Plastics has delivered a solid one-year return of about 34.0% and a year-to-date return of 20.8%, outperforming the S&P 500. Average volume of shares traded over the last three months is approximately 1196K.
Over the past 52 weeks, Berry Plastics’ share price has ranged from a 52-week low of $21.00 on Nov 27, 2013, to a 52-week high of $28.99 on Nov 25, 2014. Evansville, IN- based Berry Plastics is a manufacturer and distributor of plastic consumer packaging and engineered materials in North America and internationally with a market cap of $3.4 billion. Berry Plastics has long-term estimated earnings per share growth rate of 16%.
Growth Drivers
Berry Plastics’ share price has been on a rise since it reported its fourth-quarter results on Nov 21. Adjusted earnings from continuing operations rose 6% year over year to 35 cents per share aided by record sales of $1.31 billion. Sales increased 9% year over year, driven by increased selling prices due to higher material costs along with sales from businesses which were acquired by the company in the last 12 months, partially offset by weak packaged food demand.
For fiscal 2014, Berry Plastics reported adjusted earnings of $1.31, up 26% year over year. Revenues for the year increased 7% year over year to $4.96 billion, primarily attributed to revenues from acquired businesses along with increases in net selling prices due to the pass through of higher raw material costs, partially offset by weak packaged food demand.
Continued focus on driving organic and international growth coupled with cost reduction actions pave the way for Berry Plastics’ success in the future. In Nov 2013, the company had initiated a cost reduction plan designed to deliver approximately $27 million of cost savings and improved equipment utilization. Going forward, Berry Plastics will remain focused on its key strategic initiatives to persistently drive shareholder value.
Other Stocks to Consider
Berry Plastics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the sector include Mercer International Inc. (MERC), Crown Holdings Inc. (CCK) and MeadWestvaco Corporation (MWV). While Mercer sports a Zacks Rank #1 (Strong Buy), Crown Holdings and MeadWestvaco hold a Zacks Rank #2 (Buy).
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