Packaged-food manufacturer Landec Corp. (LNDC) said second-quarter net income fell 63% from a year ago on higher produce-sourcing costs in the aftermath of hurricanes and tropical storms that hit the U.S. and Caribbean last year.
The Santa Clara, Calif.-based company reported a profit of $487,000, or 2 cents a share, down from $1.3 million, or 5 cents a share, a year earlier. Revenue rose slightly to $136.5 million, compared with $135.9 million in the same quarter last year.
Analysts polled by Thomson Reuters had forecast per-share earnings of 1 cent on $135.8 million in revenue.
Shares rose 2% to $12.45 in after-hours trading.
The higher produce-sourcing costs dented the profit of its Apio's Eat Smart packaged-vegetables business. During November, there were green bean shortages, resulting in the highest average cost for green beans in more than 15 years, the company said.
For fiscal 2018, Landec is reiterating its revenue growth guidance of 2% to 4% and earnings per share of 52 cents to 58 cents.
The company also announced Wednesday that Target Corp. is its newest Eat Smart salad customer. Landec said this month that its Apio food business will begin shipping nine Eat Smart salad products, including five single-serve Shake Ups! salads and four multi-serve salad kits, to about 330 Target stores in the U.S.
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(END) Dow Jones Newswires
January 03, 2018 18:07 ET (23:07 GMT)