Lancaster Colony Corp. (NASDAQ:LANC) is a manufacturer and marketer of specialty food products. Shares have plunged 18.3% in 2019 as of close on August 28. The stock is down 6.1% over the past month.
The company’s stock plunged to a 52-week low after the release of its fourth-quarter and full-year results for fiscal 2019.
In Q4 2019 retail net sales dropped 1.4% year-over-year to $154.5 million due to lower sales volumes among its top products. Net income nudged higher to $33 million or $1.20 per diluted share compared to $32.4 million or $1.18 per diluted share in the prior year.
For the full year, consolidated net sales increased 6.9% to a record $1.308 billion and net income rose to $150.5 million or $5.46 per diluted share, over $135.3 million or $4.92 per diluted share in 2018.
Overhead expenses were a drag on earnings, and the slump in retail sales seemed to spook investors judging by the post-earnings dip. Still, it has posted strong organic growth in its food service segment and is projecting a better performance for fiscal 2020.
Lancaster Colony hiked its dividend for the 56th consecutive year and offers a quarterly payout of $0.65 per share. This represents a 1.8% yield.
Shares possess a price-to-earnings ratio of 28 and a price-to-book of 5.4, both in the higher range. However, the stock currently has an RSI of 37 which puts it just outside of technically oversold territory.
