The 10-second takeaway
For the quarter ended Feb. 24 (Q3), Landec beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share didn't move.
Gross margins dropped, operating margins increased, net margins dropped.
Landec booked revenue of $117.9 million. The five analysts polled by S&P Capital IQ predicted revenue of $109.1 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $80.1 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 $0.18. The five earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.18 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.9%, 160 basis points worse than the prior-year quarter. Operating margin was 5.6%, 60 basis points better than the prior-year quarter. Net margin was 4.1%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $101.2 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $437.6 million. The average EPS estimate is $0.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 911 members out of 936 rating the stock outperform, and 25 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 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 $14.38.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.
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