Landec -7.5% on downside guidance for quarter, year


Landec (LNDC -7.5%) is lower after issuing downside guidance for FQ2 (Nov.), seeing EPS of ~$0.13 vs. $0.21 analyst consensus due to severe shortages of produce resulting in much higher than projected costs for raw materials in its value-added vegetable business.

Issues mixed guidance for FY 2014 (May), seeing EPS higher by 0%-5% Y/Y to $0.70-$0.74 vs. $0.84 consensus and revenues up 6% Y/Y to $468M vs. $472M consensus.

Feltl & Co. cuts its share price target to $13.50 from $16; the firm is confident in LNDC's long-term outlook but the easiest comparisons start to hit in FQ4, meaning the stock could languish for a quarter (Briefing.com).

Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1583) | Send Message
     
    Another business being screwed by climate change. I guess it could be worse. They could have been in the Philippines.
    22 Nov 2013, 12:47 PM Reply Like
  • Palladium31
    , contributor
    Comments (549) | Send Message
     
    This has been a problem for several quarters now. I still believe in the company, but they really need to:

     

    A) in the short-term: lock in long term purchasing contracts;

     

    B) in the long-term: buy-out Windset & expand greenhouse production.

     

    Long LNDC.
    22 Nov 2013, 12:57 PM Reply Like
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