Lancaster Colony Profit Misses Estimate - Update

(RTTNews) - Specialty food products maker Lancaster Colony Corp. (LANC), Thursday reported a decline in fourth-quarter profit, hurt mainly by operating expenses, even as sales climbed 6 percent. Earnings for the quarter missed Wall Street estimates, while sales surpassed expectations.

Following the results, Lancaster shares dropped 4.7 percent in morning trade on the Nasdaq.

Lancaster offers dips, salad dressings, and croutons as well as frozen breads and homemade rolls.

The Columbus, Ohio-based company posted quarterly net earnings of $21.3 million or $0.78 per share, compared with $25.5 million or $0.93 per share last year.

On average, three analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Cost of sales for the quarter increased by about $13 million from last year, and selling and general expenses by $4 million.

Meanwhile, sales for the quarter climbed to $259 million from $245 million in the prior year.

Analysts expected sales of $257 million for the quarter.

Lancaster said retail sales volumes improved on growth in dressings and croutons, partly offset by promotional costs. Food service sales rose marginally, but were offset by lower pricing.

The company said commodity costs are expected to be modestly favorable in the first half of the fiscal year, partly offset by lower pricing in the food service channel.

The company's shares are trading at $88.60, down $4.36 or 4.69%.