The Gory Details on Lancaster Colony's Double Fumble

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Lancaster Colony (NAS: LANC) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Lancaster Colony missed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly, and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Lancaster Colony chalked up revenue of $311.8 million. The three analysts polled by S&P Capital IQ expected revenue of $327.2 million. Sales were 1.4% lower than the prior-year quarter's $316.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.11. The three earnings estimates compiled by S&P Capital IQ anticipated $1.14 per share on the same basis. GAAP EPS of $1.11 for Q2 were 11% lower than the prior-year quarter's $1.25 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.4%, 230 basis points worse than the prior-year quarter. Operating margin was 14.0%, 250 basis points worse than the prior-year quarter. Net margin was 9.7%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $259 million. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $3.55.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 79 members out of 84 rating the stock outperform, and five members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Lancaster Colony a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lancaster Colony is hold, with an average price target of $67.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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