Lamb Weston (LW) reported earnings Tue 10 Jan 2017 (b/o)

     

• Lamb Weston (LW) was spun-off by Conagra Foods (CAG) as an independent public company on November 10, 2016.
• Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers, with nearly $3 billion in annual sales.

** charts after earnings **

Lamb Weston beats by $0.07, beats on revs; guides FY17 EPS above consensus, raises sales outlook :

• Reports Q2 (Nov) earnings of $0.63 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.56; revenues rose 6.8% year/year to $790.7 mln vs the $772.1 mln two analyst estimate.
• Volume increased 4 percentage points as productivity programs and strong manufacturing plant performance stretched available capacity, allowing the Company to meet demand growth in both North America and international markets. Price/mix increased 3 percentage points due to pricing actions and favorable product and customer mix.
• Co issues upside guidance for FY17, sees EPS of $2.20-2.28, excluding non-recurring items, vs. $2.11 Capital IQ Consensus Estimate; sees net sales up mid-single digits vs. prior guidance for up low single digits. Co expects Adjusted EBITDA including unconsolidated joint ventures to grow at a mid-teens rate, up from a previous estimate of a high single digit increase, reflecting solid sales growth and savings from supply chain efficiencies, partially offset by lower contribution from equity method investment earnings. Potato costs are expected to remain essentially flat.

Lamb Weston President and CEO Tom Werner ringsa ceremonial bell after taking part in the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. November 15, 2016 (Courtesy: Reuters / Yahoo Finance)

Lamb Weston supplies frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers.

Neiman Marcus withdraws IPO

Neiman Marcus Group Inc. requested to withdraw its initial public offering Friday, saying the IPO is "not in its best interests" at this time. The company filed to go public in August 2015.

Neiman Marcus' abandoned IPO underscores the challenges facing the high-end retailer, as the broader industry struggles under the weight of competitive pressure from off-price stores and online retailers such as Amazon.com Inc

Neiman Marcus declined to comment on the reasons for pulling the IPO.

Neiman Marcus, which also operates the Bergdorf Goodman and MyTheresa brands, was acquired by private equity firm Ares Management and Canada Pension Plan Investment Board three years ago for $6 billion.

The Dallas-based company filed to go public in August 2015, but it soon decided to put these plans on hold as a strong U.S. dollar hurt its store revenue in gateway tourist destinations such as New York, Las Vegas, Los Angeles and Hawaii.

Late 2015 through 2016 was a notably rocky period for IPOs, plagued by market jitters and volatility. Companies only raised $19 billion through public offerings last year, down 42 percent from $32 billion a year prior.

As skittish investors became more concerned with companies' earnings, some of the biggest victims of last year's IPO rut were private equity backed, highly indebted companies such as Neiman Marcus, which had been looking to use IPO proceeds to pay down debt.

As of late October, Neiman Marcus had about $4.9 billion in debt, including its asset-based revolving credit facility, much of which stemmed from its 2013 buyout. Last fall, lenders allowed it to push out a maturity on its revolving credit line to 2021, under certain conditions, from 2018, giving the company more time to boost sales to repay debt.

For the 12 months ending Sept. 26, Neiman Marcus reported $4.95 billion in sales, a decrease of 2.9 percent from the year prior. It also reported a net loss of $406 million, as compared to net earnings of $14.9 million a year earlier.

Hilton Grand Vacations (HGV) and Park Hotels & Resorts (PK) began trading on the NYSE on 4 Jan 2017

• Hilton (HLT) spinoffs

Nearly 10 months after announcing plans to spin off its real estate and timeshare businesses, Hilton Worldwide Holdings Inc. (NYSE: HLT) is expected to officially split into three Tuesday.

The transaction will create two new public companies: a real estate investment trust called Park Hotels & Resorts and the timeshare business Hilton Grand Vacations. Shares of both will begin trading Wednesday morning on the New York Stock Exchange. Park will use the ticker “PK” and Hilton Grand Vacations “HGV.”

 

 

Executives and guests of Hilton Grand Vacations (NYSE:HGV) visit the New York Stock Exchange (NYSE) to celebrate their spin-off from Hilton (NYSE:HLT). To mark the occasion President and Chief Executive Officer of Hilton Grand Vacations, Mark Wang, rings the Opening Bell. (Photo Credit: NYSE)

Hilton's board approved the transaction, including a one-for-three stock split, Dec. 5. The split will reduce the number of shares of Hilton stock from 990 million to 330 million; Hilton shareholders will get two shares of Park common stock and one share of Grand Vacations stock for every 10 shares of Hilton stock they own.

The move comes as Hilton takes on a much larger competitor in Marriott International Inc. (NASDAQ: MAR), which completed its merger with Starwood Hotels & Resorts in September. Hilton has about 300,000 rooms in its pipeline and a total of 789,000 rooms open. Marriott has 420,000 rooms in its pipeline and more than 1.1 million rooms open.

Park Hotels & Resorts is taking 69 properties off of Hilton’s hands, including the Hilton McLean Tysons Corner next to Hilton’s headquarters.