Lancaster Colony (LANC) Q2 Earnings Report Preview: What To Look For

Adam Hejl /
2024/01/31 2:01 am EST

Specialty food company Lancaster Colony (NASDAQ:LANC) will be reporting results tomorrow before market hours. Here's what you need to know.

Last quarter Lancaster Colony reported revenues of $461.6 million, up 8.5% year on year, in line with analyst expectations. It was a slower quarter for the company, with a miss of analysts' EPS estimates.

Is Lancaster Colony buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lancaster Colony's revenue to grow 3.3% year on year to $493.3 million, slowing down from the 11.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.

Lancaster Colony Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2%.

Looking at Lancaster Colony's peers in the packaged food segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Simply Good Foods delivered top-line growth of 2.6% year on year, missing analyst estimates by 0.2% and Lamb Weston reported revenues up 35.7% year on year, exceeding estimates by 1.9%. Simply Good Foods traded up 1.4% on the results, and Lamb Weston was down 1.4%.

Read our full analysis of Simply Good Foods's results here and Lamb Weston's results here.

Stocks have faced challenges as investors prioritize near-term cash flows and while some of the packaged food stocks have fared somewhat better, they have not been spared, with share price declining 2.5% over the last month. Lancaster Colony is up 12.6% during the same time, and is heading into the earnings with analyst price target of $189.8, compared to share price of $187.3.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.