Landec lowers Q2 EPS view to 1c-3c from 6c-8c
Consensus is for Q2 EPS 7c. Reaffirms Q2 revenue guidance of $135M-$140M, consensus 136.46M. The Company expects the lower Q2 EPS to be offset by higher net income than originally expected in the second half of fiscal 2018. The Company will provide guidance for the Q3 and second half of fiscal 2018 in its Q2 earnings release in early January. The revised EPS guidance for the Q2 is a result of the larger than expected impact on the supply and quality of produce at Apio, Landec's food business, than management had originally projected from the hurricanes and tropical storms that occurred during the late summer and early fall. It is important to note that there has been no disruption to the supply of vegetables for Apio's Eat Smart packaged salads during this time, nor does management expect future disruptions in its ability to meet demand for its salad product offerings. The most significant impact during the quarter was on the supply and quality of green beans leading to excessive green bean shortages throughout the industry.