The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Lancaster Colony met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins grew across the board.
Lancaster Colony reported revenue of $326.2 million. The three analysts polled by S&P Capital IQ expected sales of $328.9 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $311.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.28. The three earnings estimates compiled by S&P Capital IQ predicted $1.25 per share. GAAP EPS of $1.28 for Q2 were 15% higher than the prior-year quarter's $1.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.0%, 260 basis points better than the prior-year quarter. Operating margin was 16.1%, 210 basis points better than the prior-year quarter. Net margin was 10.8%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $281.6 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $4.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 86 members out of 91 rating the stock outperform, and five members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Lancaster Colony a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lancaster Colony is outperform, with an average price target of $79.50.
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