Landec 3Q profit flat, shares fall in late trading
MENLO PARK, Calif. (AP) — Landec Corp., which sells food packaging, reported flat earnings for the fiscal third quarter and said revenue in the May quarter would fall below expectations.
The shares rose 24 cents to end regular trading at $13.34. They were down $1.01, or 7.6 percent, to $12.33 during after-hours trading.
Landec predicted that fourth-quarter net income would be between $4 million and $4.5 million on revenue of $101 million to $105 million.
Analysts expected net income of $4.3 million and revenue of $108.7 million, according to FactSet.
The company said its forecast reflected the effect of a March freeze in Florida that hurt the green bean crop, potentially costing the company $2 million in pretax income.
For the fiscal year ending in May, Landec expects net income to rise by 70 to 75 percent, including a one-time gain, compared to an earlier growth forecast 60 percent to 70 percent. The company did not provide per-share estimates. Revenue is now expected to grow between 37 percent and 38 percent, compared with a prior range of 33 percent to 38 percent.
For the third quarter, which ended in February, net income was flat at $4.8 million, or 18 cents per share, in line with analysts' forecasts.
Revenue jumped 47 percent to $117.9 million $80.1 million a year earlier due to an April 2012 acquisition. Analysts expected $109.7 million.
Landec, based in Menlo Park, Calif., sells packaging for food and makes materials for medical devices and personal-care products.