Landec Earnings: Here’s Why Investors are Ambivalent Now

Landec Corp. (NASDAQ:LNDC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Landec Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 54.55% to $0.17 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 29.64% to $107.11 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Landec Corp. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.16. It beat the average revenue estimate of $103.73 million.

Quoting Management: Gary Steele, Landec’s Chairman and CEO, commented, “We had a good fourth quarter and an outstanding fiscal year. Operating highlights for the fourth quarter and fiscal year included: (1) growing Lifecore’s revenues 20% during both periods and growing pre-tax net income before intercompany charges by 135% and 23%, respectively, (2) increasing revenues in our non-GreenLine Apio food business by 20% and 15%, respectively, (3) increasing Apio’s export revenues by 10% during fiscal year 2013, (4) launching a family of new superfood products with significant initial nationwide demand during the year, and (5) benefiting from our partner Windset’s 64-acre expansion of hydroponic greenhouses in Santa Maria, California, that is scheduled to begin initial harvesting early this fall, several months ahead of plan. This expansion will double Windset’s capacity in California to 128 acres, or six million square feet of greenhouse operations.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 5.56% from $0.18 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.19 and has not changed. For the current year, the average estimate is a profit of $0.85, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)