Landec Shares Slide After Q1 Earnings Miss; Warns About Inflationary Pressure

Landec Corp LNDC reported a first-quarter FY22 revenue decline of 5.1% year-on-year, to $128.79 million, missing the analyst consensus of $129.12 million.
The company attributed the lower revenue to a 6.2% decrease in Curation Foods segment revenues, partially offset by a 0.7% increase in Lifecore segment revenues.
Gross profit of $17.5 million increased 7.2% Y/Y, and the gross margin expanded 160 basis points to 13.6%.
Adjusted EBITDA of $4.4 million increased 42% Y/Y. Adjusted EPS of $(0.23) missed the analyst consensus of $(0.12).
Landec held $1.4 million in cash and equivalents as of August 29, 2021.
The company has warned of continuing inflationary pressures and supply chain challenges.
Outlook: Landec reiterated the FY22 consolidated revenue outlook of $545 million - $554 million versus the consensus of $547.19 million.
The company expects FY22 adjusted EBITDA of $33.3 million - $35.5 million.
Price Action: LNDC shares are trading lower by 10.4% at $9.21 on the last check Thursday.