Landec (LNDC) Tops Q2 EPS by 1c; Sees FY16 Reveue up 3% - 6%

January 5, 2016 4:12 PM EST

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Landec (NASDAQ: LNDC) reported Q2 EPS of $0.07, $0.01 better than the analyst estimate of $0.06. Revenue for the quarter came in at $140 million versus the consensus estimate of $143.47 million.

Management Comments and Guidance for Fiscal 2016

“The severe produce shortages during the second quarter of fiscal 2016 had a significant negative impact on our financial results,” continued Hemmeter. “As stated in our release on December 8, 2015, we have revised, and are reiterating at this time, our guidance for all of fiscal 2016 that we expect revenues will increase 3-6%, operating income 25-35% and net income 10-20% compared to fiscal 2015. The revised guidance for fiscal 2016 includes a significant reduction in the projected increase in our Windset investment from our original guidance and a significant contingency for sourcing issues. However, if El Nino rains have a larger impact on supply in California and Mexico than we are currently estimating, or heavy rains continue in Florida, this contingency may not be sufficient and results could be further affected. The Company continued to experience more severe produce shortages than projected throughout December.

“Despite these short-term setbacks, we are very excited about the progress in, and future prospects for, both of our businesses. Lifecore is having a record year this year with projected revenue growth of approximately 25% and operating income growth of 130-140%. We expect double digit revenue and operating income growth from this business next year and for the foreseeable future. Our Apio salad kit business continues to grow rapidly with growth of 78% during the 12 months ended November 2015 compared to the same period last year and we expect to introduce several more vegetable salads over the next year. Importantly, our continued strategy of innovating new products in both our food and biomaterials businesses is working, enabling our projected fiscal 2016 operating income to grow 25-35% and net income to grow 10-20% in spite of the severe produce shortages we have been experiencing this year. Once we return to full supply we are well positioned for sustained, profitable growth,” concluded Hemmeter.

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

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