The 10-second takeaway
For the quarter ended May 26 (Q4), Landec beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins shrank, net margins expanded.
Landec chalked up revenue of $107.1 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $103.4 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $82.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.17. The five earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.17 for Q4 were 55% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 12.2%, 570 basis points worse than the prior-year quarter. Operating margin was 3.8%, 220 basis points worse than the prior-year quarter. Net margin was 4.2%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $112.1 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $478.7 million. The average EPS estimate is $0.89.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 910 members out of 935 rating the stock outperform, and 25 members rating it underperform. Among 278 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Landec a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Landec is buy, with an average price target of $17.12.
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