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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