Notable Runner: Landec Corporation (NASDAQ: LNDC)

Chastity Messenger

I am Chastity Messenger and I give “Import Tourism” an insight into the most recent news hitting the “Consumer Goods” sector in Wall Street.

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

Address: 4437 Yorkshire Circle, Greenville, NC 27834, USA
Phone: (+1) 252-274-1912
Email: chastitymessenger@importtourism.com
Chastity Messenger

SANTA CLARA, Calif., June 26, 2019 – Shares of Landec Corporation (NASDAQ: LNDC) showed the bullish trend with a higher momentum of 0.42% to $9.56. The company traded total volume of 213,921 shares as contrast to its average volume of 170.75K shares. The company has a market value of $284.89M and about 29.80M shares outstanding.

Landec Corp. (LNDC) recently reported fiscal third-quarter profit of $1.10M.

Third Quarter 2019 Results Contrast to Third Quarter of 2018 from Continuing Operations

Revenues in the third quarter of fiscal 2019 increased 7% to $155.70M contrast to $144.90M in the year-ago quarter. The increase was because of a $10.00M or 8% increase in revenues at Curation Foods mainly from the addition of Yucatan Foods during the quarter and from a $744.0K or 3% increase in Lifecore revenues.

The Company recorded net income of $1.10M, or $0.04 per share, in the third quarter of fiscal 2019 contrast to net income from continuing operations of $16.30M, or $0.58 per share, in the year-ago quarter. The decrease was a result of (1) a $13.70M or $0.49 per share, one-time tax benefit from the new corporate income tax rate that went into effect during the third quarter of last year, (2) $1.70M of acquisition-related expenses, (3) a $2.30M net increase in operating expenses mainly because of the addition of Yucatan Foods and Now Planting soups this fiscal year and after counting the $2.60M benefit from the reduction in the earnout liability from the O acquisition, and (4) a $1.20M increase in interest expense. These decreases in net income were partially offset by a $1.40M increase in gross profit at Curation Foods, mainly from the addition of Yucatan Foods during the quarter and from a $600.0K decrease in income taxes, excluding the tax benefit from tax reform recorded during the third quarter of last year.

Fiscal Nine Months 2019 Results:

Revenues in the first nine months of fiscal 2019 increased 6% to $405.30M from $383.20M in the same period last year. The increase was because of a $19.60M or 6% increase in revenues at Curation Foods and a $2.50M or 5% increase in Lifecore revenues.

The Company recorded net income of $672.0K, or $0.02 per share, during the first nine months of fiscal 2019 contrast to net income from continuing operations of $19.10M, or $0.68 per share, in the same period last year. The decrease was a result of (1) a $13.70M or $0.49 per share, one-time tax benefit from the new corporate income tax rate that went into effect during the third quarter of last year, (2) $2.50M of acquisition-related expenses, (3) a $1.80M net increase in operating expenses mainly because of the addition of Yucatan Foods and Now Planting soups this fiscal year and after counting the $3.50M benefit from the reduction in the earnout liability from the O acquisition, (4) a $1.90M increase in interest expense, and (5) a $1.60M increase in the fair market value of the Company’s Windset investment during the first nine months of fiscal 2019 contrast to a $2.20M increase in the first nine months of last year. These decreases in net income were partially offset by a $745.0K increase in gross profit at Curation Foods, mainly from the addition of Yucatan Foods and from a $1.70M decrease in income tax expenses, excluding the impact from the tax reform in fiscal 2018.

The Company offered net profit margin of 1.30% while its gross profit margin was 14.90%. ROE was recorded as 2.60% while beta factor was 0.78. The stock, as of recent close, has shown the weekly upbeat performance of 0.95% which was maintained at -19.26% in this year.

Chastity Messenger

Chastity Messenger

I am Chastity Messenger and I give “Import Tourism” an insight into the most recent news hitting the “Consumer Goods” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 4437 Yorkshire Circle, Greenville, NC 27834, USA Phone: (+1) 252-274-1912 Email: chastitymessenger@importtourism.com