Thursday, August 11, 2022 - Landec Cp (LNDC) reported in line earnings and upside revenues.
Analyst expectations for Landec Cp earnings per share (EPS) were at a loss of $0.01 per share, with the company missing those estimates with a reported EPS loss of $0.01 per share, leading to a neutral surprise of $0 per share. Landec Cp's earnings were down 114% year-over-year as the firm reported an EPS of $0.07 in its year-ago quarter. The negative annual growth shows the Consumer Defensive company isn't performing well amid current economic conditions.
Consensus estimates for Landec Cp revenue averaged out to $45.6 million, with the business managing to beat those expectations with reported fourth-quarter revenue of $47.6 million. The $2.1 million (5%) positive revenue surprise led to negative 66% growth year-over-year as the firm reported revenue of $139.8 million in its year-ago quarter. The lower earnings growth compared to revenue points to Landec Cp not being able to improve its profit margin.
The stock is up 8.39% to $11.95 after the report.
The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.
The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.
Trading in the five days leading up to the report earned Landec Cp a Bullish Sentiment Rank from InvestorsObserver.
Prior to the report, InvestorsObserver gave the stock an overall score of 47. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.
Landec Corp designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets, and license technology applications to partners. It has two proprietary polymer technology platforms, Intelimer polymers, and hyaluronan biopolymers. The company also sells specialty packaged branded Eat Smart and GreenLine and private label fresh-cut vegetables and whole produce to retailers, club stores, and foodservice operators. Its segments are Curation Foods segment, the Lifecore segment, and the Other. It derives key revenue from the Packaged fresh vegetable segment which includes the marketing and packing of specialty packaged whole and fresh-cut fruit and vegetables. The company has the business presence in US and other countries.