Latest news with #LANC
Yahoo
05-06-2025
- Business
- Yahoo
1 Safe-and-Steady Stock for Long-Term Investors and 2 to Ignore
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Finding the right balance between safety and returns isn't easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need. Rolling One-Year Beta: 0.05 Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Does LANC Worry Us? Annual revenue growth of 5.4% over the last three years was below our standards for the consumer staples sector Modest revenue base of $1.89 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony's stock price of $167.07 implies a valuation ratio of 23.6x forward P/E. If you're considering LANC for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.86 Founded by a former game parlor and bar operator, Dave & Buster's (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences. Why Do We Think PLAY Will Underperform? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $23.73 per share, Dave & Buster's trades at 8.7x forward P/E. Check out our free in-depth research report to learn more about why PLAY doesn't pass our bar. Rolling One-Year Beta: 0.54 Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer. Why Could TSCO Be a Winner? Rapidly increasing store base reflects a desire to sell in new markets and scale quickly Sales outlook for the upcoming 12 months implies the business will stay on its desirable six-year growth trajectory Industry-leading 35.2% return on capital demonstrates management's skill in finding high-return investments Tractor Supply is trading at $49.58 per share, or 22.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
15-05-2025
- Business
- Yahoo
2 Russell 2000 Stocks for Long-Term Investors and 1 to Think Twice About
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here are two Russell 2000 stocks that could be the next big thing and one that may face some trouble. Market Cap: $4.56 billion Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Are We Hesitant About LANC? 5.4% annual revenue growth over the last three years was slower than its consumer staples peers Revenue base of $1.89 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony is trading at $165.48 per share, or 23.4x forward P/E. Read our free research report to see why you should think twice about including LANC in your portfolio, it's free. Market Cap: $7.89 billion Installing the first bulk Co2 tank for McDonalds's sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses. Why Are We Bullish on GTLS? Sales pipeline is in good shape as its backlog averaged 41.6% growth over the past two years Operating margin improvement of 7.3 percentage points over the last five years demonstrates its ability to scale efficiently Earnings per share grew by 35% annually over the last two years and trumped its peers At $172.71 per share, Chart trades at 13.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Market Cap: $4.70 billion Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation. Why Are We Backing BE? Annual revenue growth of 14.5% over the last five years was superb and indicates its market share increased during this cycle Additional sales over the last two years increased its profitability as the 74.2% annual growth in its earnings per share outpaced its revenue Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point Bloom Energy's stock price of $20.28 implies a valuation ratio of 45.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
LANC Q1 Earnings Call: Supply Chain Actions Offset Weak Sales, New Retail Initiatives Highlighted
Specialty food company Lancaster Colony (NASDAQ:LANC) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.9% year on year to $457.8 million. Its non-GAAP profit of $1.54 per share was 2.3% below analysts' consensus estimates. Is now the time to buy LANC? Find out in our full research report (it's free). Revenue: $457.8 million vs analyst estimates of $483.3 million (2.9% year-on-year decline, 5.3% miss) Adjusted EPS: $1.54 vs analyst expectations of $1.58 (2.3% miss) Adjusted EBITDA: $65.53 million vs analyst estimates of $69.24 million (14.3% margin, 5.4% miss) Operating Margin: 10.9%, up from 7.5% in the same quarter last year Free Cash Flow Margin: 6.7%, down from 13% in the same quarter last year Sales Volumes were flat year on year (1.5% in the same quarter last year) Market Capitalization: $4.62 billion Lancaster Colony's first quarter results were shaped by soft consumer demand and industry-wide pressures in both retail and foodservice channels. Management identified weather disruptions, the timing of major holidays, and lower restaurant traffic as key factors weighing on sales. CEO Dave Ciesinski pointed to growth in licensed products and margin expansion through cost-saving initiatives as areas of progress, despite the overall sales decline. Looking ahead, the company's forward guidance is driven by ongoing efforts to expand distribution of newer licensed brands and optimize its supply chain. Ciesinski emphasized, 'We project that our Retail segment sales will benefit from our licensing program including expanding distribution for the recently introduced Texas Roadhouse dinner rolls and the extension of Chick-fil-A sauce into the club channel.' Lancaster Colony is also monitoring external headwinds, such as the cautious consumer environment and industry shifts toward value offerings, while focusing on margin improvement through manufacturing network changes. Lancaster Colony's management attributed the first quarter's financial results to a combination of external market challenges and internal operational improvements. The company discussed actions taken to boost core brand performance, manage costs, and expand its network for future growth. Retail Licensing Expansion: The launch of Chick-fil-A sauce in club channels and the ongoing success of Texas Roadhouse dinner rolls were cited as primary drivers of retail segment momentum. Management expects these initiatives to support volume growth next year as distribution widens. Foodservice Volume Pressures: Foodservice sales were pressured by weather-related restaurant closures and softer industry traffic, with management noting that several large customers experienced extended downtime. The broader trend of restaurant chains shifting to value-focused menus also weighed on volumes. Operational Efficiencies: Gross margin improvements were attributed to supply chain productivity, value engineering, and stable commodity costs. CFO Tom Pigott highlighted that cost-saving measures and favorable pricing versus input costs offset the impact of lower sales. Manufacturing Network Changes: The acquisition of an Atlanta-based sauce and dressing facility and the planned closure of a California plant were described as key steps to streamline operations and reduce costs. These moves are expected to enhance the company's ability to serve key customers efficiently. Retail Market Share Gains: Despite the challenging environment, core brands such as New York Bakery and Sister Schubert's increased market share in frozen bread categories. The company's licensing program also contributed to share gains in sauces and dressings. Management expects Lancaster Colony's near-term performance to be shaped by expansion of licensed products, continued supply chain optimization, and persistent industry headwinds in both retail and foodservice. Licensed Product Distribution: Broader rollout of Chick-fil-A sauces in club stores and Texas Roadhouse dinner rolls in mass retail channels are expected to drive incremental sales, with management describing these as meaningful contributors in upcoming quarters. Supply Chain Restructuring: The integration of the Atlanta facility and closure of the Milpitas, California plant are central to margin improvement goals, with management aiming to streamline production and reduce operating costs. Consumer and Industry Risks: Ongoing softness in consumer demand and restaurant traffic, as well as potential shifts in promotional activity, remain risks that could impact both revenue and volume trends. Jim Salera (Stephens): Asked about collaborating with foodservice customers to offset weak industry traffic; management responded that menu innovation and select price increases could help, but they expect low single-digit declines unless traffic recovers. Scott Marks (Jefferies): Inquired about refrigerated dressings' underperformance; CEO Ciesinski explained it was largely due to Easter timing, and noted some broader consumer softness in that category. Andrew Wolf (C.L. King): Sought clarity on promotional strategy and competitive dynamics; management reiterated a cautious approach to trade spending, preferring targeted promotions and end-cap placement over broad price cuts. Alton Stump (Loop Capital): Questioned the potential impact of Chick-fil-A sauce in club channels; management characterized it as a significant growth opportunity and noted strong early performance at Sam's and Costco. Andrew Wolf (C.L. King): Asked for quantification of the Easter holiday impact; management estimated at least a one percentage point effect on adjusted volume. The StockStory team will be monitoring (1) the pace and impact of new licensed product rollouts, especially the expansion of Chick-fil-A sauces and Texas Roadhouse dinner rolls; (2) progress on supply chain initiatives, including the Atlanta facility integration and Milpitas plant closure; and (3) stabilization or improvement in both retail and foodservice volumes. Any shifts in consumer demand or competitive pricing will also be key drivers in the quarters ahead. Lancaster Colony currently trades at a forward P/E ratio of 23.7×. Should you double down or take your chips? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
30-04-2025
- Business
- Yahoo
Lancaster Colony (LANC) Earnings Expected to Grow: Should You Buy?
Wall Street expects a year-over-year increase in earnings on higher revenues when Lancaster Colony (LANC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on April 30, 2025, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This specialty food maker is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of +11.8%. Revenues are expected to be $484.25 million, up 2.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.34% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Lancaster Colony, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Lancaster Colony will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Lancaster Colony would post earnings of $1.94 per share when it actually produced earnings of $2.22, delivering a surprise of +14.43%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Lancaster Colony doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Sysco (SYY), another stock in the Zacks Food - Miscellaneous industry, is expected to report earnings per share of $1.03 for the quarter ended March 2025. This estimate points to a year-over-year change of +7.3%. Revenues for the quarter are expected to be $19.97 billion, up 3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Sysco has been revised 0.7% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.52%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Sysco will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lancaster Colony Corporation (LANC) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Lancaster Colony (LANC) Misses Q3 Earnings and Revenue Estimates
Lancaster Colony (LANC) came out with quarterly earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.61 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this specialty food maker would post earnings of $1.94 per share when it actually produced earnings of $2.22, delivering a surprise of 14.43%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Lancaster Colony , which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $457.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.46%. This compares to year-ago revenues of $471.45 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lancaster Colony shares have added about 11.4% since the beginning of the year versus the S&P 500's decline of -5.5%. While Lancaster Colony has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lancaster Colony: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.46 on $468.3 million in revenues for the coming quarter and $6.85 on $1.93 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, SunOpta (STKL), has yet to report results for the quarter ended March 2025. The results are expected to be released on May 7. This natural and organic food company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SunOpta's revenues are expected to be $190 million, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lancaster Colony Corporation (LANC) : Free Stock Analysis Report SunOpta, Inc. (STKL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
