The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Lancaster Colony missed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly, and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Lancaster Colony chalked up revenue of $311.8 million. The three analysts polled by S&P Capital IQ expected revenue of $327.2 million. Sales were 1.4% lower than the prior-year quarter's $316.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.11. The three earnings estimates compiled by S&P Capital IQ anticipated $1.14 per share on the same basis. GAAP EPS of $1.11 for Q2 were 11% lower than the prior-year quarter's $1.25 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.4%, 230 basis points worse than the prior-year quarter. Operating margin was 14.0%, 250 basis points worse than the prior-year quarter. Net margin was 9.7%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $259 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $3.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 79 members out of 84 rating the stock outperform, and five members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 hold, with an average price target of $67.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.