[ACCESSWIRE]
Upcoming AWS Coverage on Archer-Daniels-Midland
LONDON, UK / ACCESSWIRE / January 6, 2017 / Active Wall St. announces its post-earnings coverage on Landec Corp. (NASDAQ: LNDC). The Company posted its second quarter fiscal 2017 financial results on January 04, 2017. The agricultural and food packaging product Company's sales and earnings declined on a y-o-y basis. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Landec's competitors within the Farm Products space, Archer-Daniels-Midland Co. (NYSE: ADM), is estimated to report earnings on February 07, 2017. AWS will be initiating a research report on Archer-Daniels-Midland following the release of its earnings numbers.
Today, AWS is promoting its earnings coverage on LNDC; touching on stock like ADM. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=LNDC
http://www.activewallst.com/registration-3/?symbol=ADM
Earnings Reviewed
For the three months ended November 27, 2016, Landec's revenues decreased 3% to $135.9 million from $140.4 million in the year ago same quarter. The decrease was primarily due to a 9% decrease in revenues in Apio's packaged fresh vegetables business, partially offset by a 16% increase in revenues at Lifecore and a 16% increase in Apio's export business. The Company's revenues missed analysts' projection of $139.6 million. Landec's revenue in H1 FY17 fell 3% to $268.3 million from $275.8 million in the same period last year.
For Q2 FY17, Landec's consolidated gross margin increased 160 basis points to 13.9% compared to Q2 FY16. The Company's gross profit increased 10% on a y-o-y basis to $19.0 million.
For Q2 FY17, Landec's net income totaled 1.3 million, or $0.05 per share, compared to 1.9 million, or $0.07 per share, in Q2 FY16. The Company's net income was negatively impacted by a one-time non-recurring $1.2 million write-off of unamortized debt issuance cost. Net income for the quarter was also impacted by a $1.2 million increase in operating expenses, primarily at Apio resulting from additional headcount hired during the past year in areas of sales and financial analysis and from no change in the fair market value of its Windset investment during the reported quarter compared to a $200,000 increase during Q2 FY16.
These decreases in net income were partially offset by a $2 million, or 20%, increase in gross profit in Apio's packaged fresh vegetables business due to a favorable product mix shift to a higher percentage of revenues derived from salad kit sales and from favorable operating cost variances, specifically of lower produced sourcing costs and improved labor efficiencies in the Company's processing plants and also from a $376,000 decrease in income taxes. The Company's earnings result fell short of Wall Street's expectation for earnings of $0.06 per share. Landec's net income in H1 FY17 was $4.6 million, or $0.17 per share, compared to $4.8 million, or $0.18 per share, in H1 FY16.
Segment Details
During H1 FY17, Landec's Lifecore category revenues surged 27%, while operating income increased 46% to $4.7 million compared to H1 FY16, due primarily to a very favorable product mix change to a higher percentage of revenues being derived from higher margin fermentation sales. For the Company's Apio product, H1 FY17 gross profit was up $3.4 million, or 13%, based on a favorable shift in product mix and positive operating efficiencies even though revenues were down 5% due to Landec's prior strategic decision to focus on higher margin business in the packaged fresh vegetables business.
Balance Sheet
At the end of Q2 FY17, Landec's cash totaled 2.6 million. During the reported quarter, the Company generated 5.5 million in cash flow from operations and paid off $6.7 million of debt, Landec also invested 4.7 million in property and equipment primarily for capacity expansion during Q2 FY17. At November 27, 2016, the Company had $98.5 million available to borrow under its line of credit.
Outlook
For FY17, Landec reiterated its guidance for consolidated net income to increase 50% to 70% compared to FY16, resulting in an estimated EPS range of $0.53 to $0.60. The company expects revenues for FY17 to be flat to slightly up compared to FY16. Landec is forecasting FY17 cash flow from operations of $30 million to $35 million and capital expenditures of approximately $30 million. For Q3 FY17, the Company is projecting revenues to be in the range of $133 million to $140 million and net income to be $0.16 to $0.19 per share.
Stock Performance
On January 05th, 2017, Landec's share price finished the trading session at $13.45, dropping 5.94%. A total volume of 316.28 thousand shares exchanged hands, which was higher than the 3 months average volume of 71.93 thousand shares. The stock has advanced 26.05% and 15.55% in the last six months and past twelve months, respectively. The stock currently has a market cap of $370.41 million.
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SOURCE: Active Wall Street