Landec (LNDC) Misses Q2 EPS by 1c, Revenues Miss; Boosts FY19 EPS Guidance

Landec (NASDAQ: LNDC) reported Q2 EPS of ($0.02), $0.01 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $124.9 million versus the consensus estimate of $126.04 million.

“We now expect consolidated revenues to grow 6% to 8% in fiscal 2019 compared to fiscal 2018 as a result of the projected revenues from Yucatan during the second half of fiscal 2019. The additional Yucatan revenues will be partially offset by the effects of the hurricanes during the second quarter and by the previously disclosed lower than expected growth of salads this fiscal year. For fiscal 2019, compared to fiscal 2018, we expect Lifecore to grow 14% to 16% and LNF to grow of 5% to 7%,” stated Greg Skinner, Landec’s Vice President of Finance and CFO. “We now expect consolidated earnings per share to be $0.25 to $0.29 after accounting for the projected loss, estimated at $0.15 to $0.16 per share, from the acquisition of Yucatan as a result of (1) acquisition-related costs, (2) interest on new debt, (3) lower gross profit on acquired inventory, and (4) integration-related expenses, coupled with the change in the fair market value of our Windset investment now forecasted to be $2.5 million which is $1.5 million lower than originally projected. In addition, we are currently forecasting fiscal 2019 consolidated cash flows from operations of $26 million to $30 million and capital expenditures of $40 million to $45 million, after spending $18 million during the first six months of fiscal 2019.

“For the third quarter of fiscal 2019, we expect revenues to be in the range of $156 million to $159 million and net income to be $0.03 to $0.04 per share. The net income guidance for the third quarter reflects acquisition-related costs, additional interest expense, lower gross profit on acquired inventory from the Yucatan acquisition and integration-related expenses,” concluded Skinner.

GUIDANCE:

Landec sees FY2019 EPS of $0.25-$0.29, versus the consensus of $0.25.

For earnings history and earnings-related data on Landec (LNDC) click here.

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