Myers Industries Q3 Profit Rises; Lifts 2017 Revenue Outlook

(RTTNews) - Myers Industries Inc. (MYE) reported that its net income for the third quarter ended September 30, 2017 rose to $3.26 million or $0.11 per share from $414 thousand or $0.01 per share in the prior year.

Adjusted net income per share from continuing operations of $0.11, compared to $0.04 in the third quarter of 2016. Analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the third-quarter. Analysts' estimates typically exclude special items.

Gross profit margin increased 120 basis points to 28.3% as compared to the prior year quarter, primarily due to the higher sales volume and favorable sales mix, partially offset by restructuring expenses and higher material costs in the Material Handling Segment.

Net sales were $144.1 million, compared to $132.7 million in the third quarter of 2016. Wall Street expected revenues of $139.08 million. Net sales increased 8.6% or 8.1% excluding currency fluctuation compared to the third quarter of 2016.

The company revised its fiscal year 2017 outlook. The company now anticipates that total revenue will be up low single digits on a constant currency basis in 2017 as compared to the prior year due to continued strength in the food and beverage and consumer end markets. This compares to the Company's previous expectations for flat sales compared to the prior year.

Capital expenditures are now expected to be in the range of $7 to $9 million, net interest expense in the range of $7 to $8 million, depreciation and amortization in the range of $32 to $34 million, and an effective tax rate (normalized) of approximately 36%.