Lancaster Colony Corporation (NASDAQ:LANC) is now trading -14.24% off 52-week high price. On the other end, the stock has been noted 24.51% away from the low price over the last 52-weeks. The stock changed 5.68% to recent value of $142.63. The stock transacted 303083 shares during most recent day however it has an average volume of 190.14K shares. The company has 27.43M of outstanding shares and 18.48M shares were floated in the market.
On May 05, 2020, Lancaster Colony Corporation (NASDAQ:LANC) declared results for the company’s fiscal third quarter ended March 31, 2020. Highlights for the quarter are as follows:
- Consolidated net sales increased 1.1% to a third quarter record $321.4 million versus $317.9 million last year.
- Retail net sales increased 10.7% to $169.4 million compared to $153.0 million in the prior year. Retail net sales benefited from higher demand as the COVID-19 outbreak and related stay-at-home orders led to increased consumer demand in the retail channel during the second half of March in addition to contributions from several new products that were introduced during the quarter. The higher sales volumes were led by frozen garlic bread, shelf-stable dressings and sauces sold under license agreements and frozen dinner rolls.
- Foodservice net sales declined 7.8% to $151.9 million as foodservice channel demand was unfavorably influenced by the impact of COVID-19. Excluding all sales resulting from the November 16, 2018 acquisition of Omni Baking Company, Foodservice net sales declined 6.6%. Omni Baking sales attributed to a temporary supply agreement totaled $5.3 million in the current-year quarter compared to $7.9 million in the prior-year quarter.
- Consolidated gross profit grew $1.6 million, or 2.1%, to $77.0 million driven by the favorable sales mix shift to the Retail segment and our cost savings programs. Gross profit was unfavorably impacted by a $4.5 million inventory write-down attributed to an abrupt mid-March slowdown in Foodservice orders due to the impact of COVID-19. In addition, the company incurred a $1.0 million charge for bonuses paid to the front-line employees in our factories and distribution network in gratitude for their work in helping the company meet the shifting demand within our business.
- SG&A expenses increased $8.9 million to $46.9 million primarily driven by expenditures of $4.9 million for our ERP initiative, a higher level of IT costs and increased consumer spending, as well as higher bad debt expense related to the impact of COVID-19.
- Consolidated operating income declined $7.3 million to $30.0 million due to the impact of COVID-19 and the ERP expenses, partially offset by the benefits from the more favorable sales mix and our cost savings programs.
- Net income declined $8.2 million to $22.4 million. The Foodservice inventory write-down and bonuses paid to front-line employees decreased net income by $3.4 million and $0.8 million, respectively, and the current-year ERP expenses decreased net income by $3.7 million. Net income was also unfavorably impacted by a higher tax rate.
- Net income per diluted share decreased $0.30 to $0.81. The Foodservice inventory write-down and bonuses paid to front-line employees reduced net income per diluted share by $0.15 while current-year ERP expenses reduced net income per diluted share by $0.13. Net income per diluted share was also unfavorably impacted by a higher tax rate.
Its earnings per share (EPS) expected to touch remained 19.40% for this year while earning per share for the next 5-years is expected to reach at 3.00%. LANC has a gross margin of 25.90% and an operating margin of 14.00% while its profit margin remained 11.10% for the last 12 months.
According to the most recent quarter its current ratio was 2.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 5.00% from the mean of 20 days, 1.91% from mean of 50 days SMA and performed -4.06% from mean of 200 days price. Company’s performance for the week was 1.34%, 14.58% for month and YTD performance remained -10.91%.