Lancaster Colony Q1 Profit Rises, Results Beat View - Quick Facts

(RTTNews) - Lancaster Colony Corp. (LANC), a manufacturer of specialty food products, on Thursday reported an increase in profit for the first quarter from last year, reflecting a lower tax rate and higher revenues. Both revenue and earnings per share beat analysts' estimates.

The company's first-quarter net income was $39.0 million, or $1.42 per share, up from $29.4 million or $1.07 per share in the same period last year.

The company recorded a lower tax rate of 22.6 percent in the current year compared to the prior-year rate of 34.2 percent, primarily reflecting the favorable impact of the Tax Cuts and Jobs Act of 2017.

Consolidated net sales for the quarter increased 5.9 percent to $316.7 million from $298.9 million in the same period last year.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.27 per share for the quarter on revenues of $310.55 million. Analysts' estimates typically exclude special items.

Looking ahead to the second quarter, historically the company's biggest sales quarter of the year, Lancaster Colony said expects higher freight costs to persist while commodity costs should turn closer to neutral as the company begins to lap some of the notable increases we experienced last year, particularly egg costs.