Landec fiscal 3rd-quarter profit climbs on gains in fresh-cut vegetables, but misses estimates

Landec fiscal 3Q profit rises but misses estimates

MENLO PARK, Calif. — Landec Corp., which makes agricultural and food packaging products, said Tuesday that its fiscal third-quarter profit climbed nearly 13 percent as its fresh-cut vegetable subsidiary gained market share.

Net income for the period ending Feb. 28 totaled $1.7 million, or 7 cents per share, up from $1.5 million, or 6 cents per share, during the year-ago period.

Revenue rose nearly 8 percent to $58.1 million from $53.9 million.

The results missed the expectations of analysts. According to Thomson Reuters, analysts predicted earnings per share of 8 cents on revenue of $57.6 million.

Landec CEO Gary Steele said the company’s subsidiary that makes fresh-cut vegetables, Apio Inc., saw sales gains of 8 percent. He said that that industry’s volumes are up 7 percent in the first nine months of the company’s fiscal year.

Landec shares fell 5 cents to close at $7.13. In after-hours trading, shares slipped 58 cents, or 8 percent, to $6.55. The stock has ranged from $5.20 to $7.45 over the past year.