High Liner Foods Q1 Profit Rises 25%, Sales Hit by COVID-19; Shares Plunge 5%

Shares of High Liner Foods Inc (HLF) fell more than 5% in early trading Tuesday after the company reported lower sales and sales volume in its first quarter. High Liner Read More... The post High Liner Foods Q1 Profit Rises 25%, Sales Hit by COVID-19; Shares Plunge 5% appeared first on TipRanks Financial Blog.

High Liner Foods Q1 Profit Rises 25%, Sales Hit by COVID-19; Shares Plunge 5%

Shares of High Liner Foods Inc (HLF) fell more than 5% in early trading Tuesday after the company reported lower sales and sales volume in its first quarter. High Liner is a Canadian marketer and processor of frozen fish and seafood.

In High Liner's foodservice business, operators faced dining restrictions and closures in North America during the entire quarter. Within its retail segment, the surge in retail demand in March 2020 at the start of the pandemic, wasn't present in March 2021. As a result, quarterly sales volumes declined year-over-year in both foodservice and retail business.

Sales volume decreased 9.7% to 69.8 million pounds, while sales fell 9.4% to $243.4 million, reflecting the impact of COVID-19 throughout Q1 2021 compared to the last two weeks of Q1 2020.

Meanwhile, net income increased 25.4% to $17.8 million in the three months ended April 3, 2021. Diluted EPS increased to $0.51 per share from $0.41 per share in the prior-year quarter.

On an adjusted basis, net income decreased 1.4% to $14.1 million. Adjusted diluted EPS decreased to $0.40 per share compared to $0.41 per share a year ago due to the impact of COVID-19.

High Liner Foods’ President and CEO Rod Hepponstall said, "Our Q1 results demonstrate the continued resilience of our business, improving gross profit and the foodservice recovery that is underway. In both our retail and foodservice businesses, we are executing against our strategy and driving profitability gains as a percentage of sales. Our efforts to build a strong, integrated supply chain and a diversified portfolio has served us well during this time of heightened global supply challenges."

Gross margin as a percentage of sales increased to 23.7% from 21.9% in the prior-year quarter. (See High Liner Foods Inc stock analysis on TipRanks)

Three months ago, BMO Capital analyst Jonathan Lamers maintained a Hold rating on HLF. He raised its price target to C$14.50 (from C$11.00), for 10.7% upside potential.

Overall, consensus on the Street is that HLF is a Hold based on 3 Holds. The average analyst price target of C$14.00 implies 7% upside potential to current levels. Shares have nearly doubled in value over one year.

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The post High Liner Foods Q1 Profit Rises 25%, Sales Hit by COVID-19; Shares Plunge 5% appeared first on TipRanks Financial Blog.

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Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions

Air Canada (AC) and Edmonton International Airport (EIA) have signed a historic green partnership to reduce carbon emissions and promote a more sustainable and greener aviation industry. Shares of Canada’s largest airline jumped 3% after the announcement.   The IEA-Air Read More... The post Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions appeared first on TipRanks Financial Blog.

Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions

Air Canada (AC) and Edmonton International Airport (EIA) have signed a historic green partnership to reduce carbon emissions and promote a more sustainable and greener aviation industry. Shares of Canada’s largest airline jumped 3% after the announcement.  

The IEA-Air Canada Sustainability Partnership is the first agreement in Canada intended to reduce the carbon footprint of air travel. The two organizations will work together and focus on initiatives promoting a greener environment in various areas. 

Myron Keehn, Vice President of Air Service and Business Development at Edmonton International Airport said, "Finding good partners who share our core values is critical. Air Canada is passionate about reducing its environmental impact and our partnership shows how airlines and airports can work together to promote a sustainable future. This is only the beginning as we know that there are tremendous opportunities to lead in both an environmentally and economically sustainable way." 

Samuel Elfassy, Vice President of Safety at Air Canada said, "This partnership with Edmonton Airports is an important step towards our midterm 2030 objectives that roll up into our overall net-zero by 2050 emissions goal. We look forward to working together in developing innovative, long term, sustainable airport and ground operations emission reductions that could potentially be scaled at other airports in Canada and internationally." 

These commitments will attract further investment to the Edmonton Metropolitan Region and create highly skilled jobs as the region moves towards a greener economy. (See Air Canada stock analysis on TipRanks) 

Last week, TD Securities analyst Tim James upgraded AC to Buy from Hold and raised its price target to C$30.00 (from C$28.00), for 15.4% upside potential.  

James believes that the decline in COVID-19 cases in Canada and a "rapidly increasing" portion of the population that is vaccinated are positive catalysts for Air Canada’s stock. 

The rest of the Street is cautiously optimistic on AC with a Moderate Buy consensus rating based on 7 Buys and 3 Holds. The average analyst price target of C$30.10 implies 17% upside potential from current levels. Shares have risen nearly 15% year-to-date. 

TipRanks’ Smart Score 

AC scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock’s returns are likely to outperform the overall market. 

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The post Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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