Landec (LNDC) Misses Q2 EPS by 17c, Offers Q3 and FY Guidnce

January 2, 2020 4:09 PM EST

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Landec (NASDAQ: LNDC) reported Q2 EPS of ($0.23), $0.17 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $143.2 million versus the consensus estimate of $142.54 million.

GUIDANCE:

Landec sees Q3 2020 EPS of $0.06-$0.09, versus the consensus of $0.19. Landec sees Q3 2020 revenue of $154-158 million, versus the consensus of $162.3 million.

Landec sees FY2020 EPS of $0.28-$0.32, versus the consensus of $0.25. Landec sees FY2020 revenue of $602-613 million, versus the consensus of $606.3 million.

  • Dr. Bolles added, “We are reiterating our full year fiscal 2020 guidance and providing our forecast for third quarter of fiscal 2020. We continue to expect substantial profits to be generated in the second half of the fiscal year, with greater weight in our fourth quarter, due to the timing of revenues and profits at Lifecore, the timing of revenues and profits from the sale of avocado products, momentum with our Eat Smart® salad business and the impact from our cost out initiatives, with the large majority of cost savings occurring in the second half of fiscal 2020. Our capital allocation priorities remain focused on supporting the growth of both of our operating businesses while balancing that with efforts to strengthen our balance sheet.”
  • Excluding restructuring and nonrecurring charges, the Company is reiterating its full year fiscal 2020 guidance, which is detailed below:
  • Revenues from continuing operations to grow 8% to 10% (range of $602 million to $613 million) compared to fiscal 2019
  • Earnings per share to be $0.28 to $0.32
  • Cash flow from operations to be $26 million to $30 million
  • Consolidated EBITDA to be in the range of $36 million to $40 million
  • The Company is introducing third quarter fiscal 2020 guidance, excluding restructuring and non-recurring charges as follows:
  • Revenues from continuing operations to be in the range of $154 million to $158 million compared to third quarter of fiscal 2019
  • Net income per share of $0.06 to $0.09, due to certain shipments for Lifecore shifting from the fiscal third quarter to the fiscal fourth quarter, Yucatan working through the last of its high-cost products and starting to sell more of its lower-cost products that have been produced since October and a portion of the cost out savings for the fiscal third quarter being delayed to the fiscal fourth quarter
  • EBITDA to be in the range of $7 million to $11 million
  • Dr. Bolles concluded, “We are confident in our expectation for profitable growth starting in the fiscal third quarter and significantly accelerating in the fiscal fourth quarter. At Lifecore, we will continue to grow by supporting the initiatives of both new and existing customers. At Curation Foods, we will focus on our strategic priorities and on executing Project SWIFT, which will strengthen our operational structure and drive sustainable profitability. These enterprise-wide activities will create shareholder value by yielding a greater return on our investments, strengthening our balance sheet and delivering the quality and innovation our customers have come to expect from us.”

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



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