uploads///Lancasters Stock Price Performance against Benchmark ETF

Lancaster Colony’s Revenue and EPS Could Rise in Fiscal 2Q16


Jan. 25 2016, Updated 7:00 a.m. ET

Revenue and EPS estimates

Lancaster Colony Corporation (LANC) will be reporting it fiscal 2016 second quarter results on January 28, 2016, prior to the market opening. The analysts’ estimate for revenue is $333 million, or a rise of ~9.8% compared to the year-ago quarter. The EPS (earnings per share) are also expected to rise by 10% to $1.32 per share in fiscal 2Q16. The margins are expected to remain in line with the year-ago quarter.

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Stock on a rising trend before earnings

Lancaster reported financial results for fiscal 1Q16 on October 29, 2015. The stock reacted well and rose ~8% following the earnings release, closing at $113. The stock has been on a rising trend since then and traded in the range of $113–$118. The stock had also reacted positively after the company’s fiscal 2015 fourth quarter earnings release and had risen by ~2%. The price movement on a year-to-date basis is 2.7%, and it’s trading at ~3% on a trailing-5-day basis. The stock has gained 28% in 2015 as of January 22. The stock has gained 5% so far in the year 2016 and closed at $118.7 on January 22.

Peers in the industry

Lancaster Colony manufactures and markets specialty food products for the retail and foodservice markets in the United States. It has its headquarters in Columbus, Ohio. Its key brands are Marzetti, Cardini’s, Simply Dressed, Katherine’s Kitchen, and Girard’s. The company’s other brands include Otria, Mamma Bella, Sister Schubert’s, Marshall’s, Inn Maid, and Amish Kitchen.

Its main competitors in the processed and packaged goods industry, in particular, are Mondelez International (MDLZ), Cal-Maine Foods (CALM), and General Mills (GIS). They closed at $41.6, $48.6, and $55.3, respectively, on January 22. The PowerShares Dynamic Food and Beverage ETF(PBJ) invests 2.8% of its portfolio in the LANC stock. The ETF also makes up for 5.2% of the MDLZ stock, 2.4% of CALM, and 5.1% for GIS. The ETF closed at $30.7 on January 22 and has returned -4.8% year-to-date.

Series overview

In the next parts of the series, we’ll talk about the moving averages of Lancaster and its peers, the company’s performance in its last reported fiscal 1Q16, its earnings trend, EPS estimates, and raised quarterly dividend. We ‘ll also have a look at what the analysts recommend for the stock and further discuss what the company expects for fiscal 2016.


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