Categories Consumer, Earnings, Finance

Landec posts wider-than-expected loss in Q2

Landec Corporation (LNDC) slipped to a loss in the second quarter from a profit last year, due to acquisition-related expenses, higher operating expenses, the lower fair market value of its Windset investment, and an increase in interest expense. The results missed analysts’ expectations. The company lowered its earnings outlook for fiscal 2019 due to accounting for the projected loss from the acquisition of Yucatan.

Net loss was $584 million or $0.02 per share compared to a profit of $487 million or $0.02 per share in the previous year quarter.

Product sales rose by 2% to $124.9 million. This was primarily due to a 9% jump in revenues at Lifecore and a 1% rise in Landec Natural Foods revenues.

Looking ahead into fiscal 2019, the company lifted its revenue growth outlook to the range of 6% to 8% from the prior range of 5% to 7%, due to the projected revenues from Yucatan during the second half. Earnings guidance are lowered to the range of $0.25 to $0.29 per share from the prior range of $0.45 to $0.50 per share.

Landec Q1 profit dips 91%, yet tops estimates

For fiscal 2019, Landec expects Lifecore to grow 14% to 16% range and Landec Natural Foods to grow of 5% to 7%. Cash flow from operations is anticipated to be in the $26 million to $30 million range and capital expenditures are likely to be $40 million to $45 million range.

For the third quarter, the company predicts revenues in the range of $156 million to $159 million and earnings in the range of $0.03 to $0.04 per share. The bottom line forecast reflects acquisition-related costs, additional interest expense, lower gross profit on acquired inventory from the Yucatan acquisition and integration-related expenses.

Landec currently has about $145 million of debt which translates into debt to equity ratio of about 0.57 and debt to tangible assets ratio of 0.43. The company expects leverage ratio to decline and borrowing capacity to increase by fiscal 2019 year-end as the majority of its cash flow from operations are generated in the third and fourth quarters.

Shares of Landec ended Thursday’s regular session down 3.39% at $11.41 on the Nasdaq. Following the earnings release, the stock plunged over 7% in the after-market session.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top