Fly Intel: Top five analyst downgrades » 10:0306/3006/30/20
FET, LNDC, PSV, APO, ERII
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Forum Energy (FET) downgraded to Neutral from Overweight at Piper Sandler. 2. Landec (LNDC) downgraded to Market Perform from Outperform at Barrington with analyst Michael Petusky saying the company last night announced that it would fall well short of its previous profitability guidance for the fiscal Q4. 3. Hermitage Offshore Services (PSV) downgraded to Neutral from Buy at BTIG with analyst Gregory Lewis saying he anticipates a multi-year delay in any meaningful recovery in the offshore supply boat market combined along with the company's heavy debt load. 4. Apollo Global (APO) downgraded to Buy from Conviction Buy at Goldman Sachs with analyst Alexander Blostein saying after the 100% rally off the lows in March, Apollo's valuation more appropriately reflects its earnings mix and "solid" growth prospects, both of which remain intact. 5. Energy Recovery (ERII) downgraded to Neutral from Buy at B. Riley FBR with analyst Thomas Curran saying with the termination of its 15-year exclusive licensing deal with Schlumberger (SLB), Energy Recovery has lost the technology key to its ongoing effort to advance the VorTeq into commercialization. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Landec price target raised to $11 after revenue beat at Lake Street » 09:1206/3006/30/20
Lake Street analyst Mark…
Lake Street analyst Mark Smith raised the firm's price target on Landec to $11 from $10, stating that he was encouraged by strong revenue that beat his estimates and consensus despite the miss on the bottom line that was driven by added expenses and volatility in the quarter due to COVID-19. He thinks there is potential to execute on the strategic options Landec is seeking for its vegetable bag and tray businesses as management focuses on cutting costs and improving operations, added Smith, who keeps a Buy rating on the shares.
Landec downgraded to Market Perform from Outperform at Barrington » 08:5506/3006/30/20
Barrington analyst Michael Petusky downgraded Landec to Market Perform from Outperform without a price target. The company last night announced that it would fall well short of its previous profitability guidance for the fiscal Q4, Petusky tells investors in a research note. The analyst wonders if the company's entire Curation business "is even worth the trouble it seems to invariably create." Despite management's protestations that Landec now has a good handle on likely demand trends within Curation, uncertainties related to COVID-19 "remain firmly in place," says the analyst.
Landec sees Q4 EBITDA 12.6M-$14.6M » 16:1206/2906/29/20
Sees Q4 revenue $156.1M,…
Sees Q4 revenue $156.1M, consensus $151.1M. Sees Q4 Curation Foods: approximately $130.6M.
|Over a month ago|
Landec upgraded to Buy from Neutral at Roth Capital » 08:3204/2104/21/20
Roth Capital analyst…
Roth Capital analyst Gerry Sweeney upgraded Landec to Buy from Neutral with a price target of $15, up from $11. The analyst cited the turnaround and cost out programs that are substantially changing the company's cost structure; the announced strategic alternatives for the veggie business which should improve margins, reduce volatility and increase valuation; new management is creating a culture of continuous improvement; the post turnaround Landec that should be able to separate Curation and Lifecore, unlocking value; and activist investors that will likely keep pressure on execution.
|Over a quarter ago|
Landec upgraded to Outperform from Market Perform at Barrington » 09:3904/0104/01/20
Barrington analyst Michael Petusky upgraded Landec to Outperform from Market Perform with a $10 price target. Although he thinks the company's Q4 guidance will be challenging, he sees a period of "good top-line growth" along with margin expansion to start with FY21.
Landec provides update regarding COVID-19 » 16:1103/3103/31/20
Despite the current…
Despite the current COVID-19 pandemic, both Curation Foods and Lifecore businesses currently remain operational. Each business has implemented action plans that guide the company and its employees through this evolving situation. The company's Curation Foods business is experiencing a lift in demand in our retail and club channels as consumers make preparations for the COVID-19 pandemic, and its Lifecore business has remained largely unaffected to date. Bolles said, "Despite the current, extremely volatile environment, both of our businesses, Curation Foods and Lifecore Biomedical, have been able to remain operational, as both are considered to be a part of the country's essential infrastructure for the ongoing health and safety of the public. As a result, our employees continue to work in these challenging times, and we are enormously grateful for their individual efforts. As we look ahead, Lifecore continues on its growth trajectory and we are excited to build on the momentum at Curation Foods with a strong acceleration in fourth quarter performance. We remain committed to delivering a strong finish to fiscal 2020 and look forward to continuing this improvement into next fiscal year."
Landec backs FY20 revenue view $580M-$590M, consensus $585.24M 16:0903/3103/31/20
Landec reports Q3 adj. EPS 4c, consensus 4c » 16:0803/3103/31/20
Reports Q3 revenue…
Reports Q3 revenue $152.93M, consensus $148.8M. "We implemented significant operational enhancements during the third quarter of fiscal 2020, which resulted in a $5.9 million sequential increase in our third quarter fiscal 2020 Adjusted EBITDA, compared to our second quarter fiscal 2020 Adjusted EBITDA," said Albert Bolles, Landec's president and CEO. "Adjusted third quarter earnings per share of $0.04 were in line with our recent guidance of $0.02 to $0.06 per share and represent a $0.20 sequential increase compared to our second quarter fiscal 2020. We believe that the turnaround of Curation Foods will continue to provide a foundation for further improvements in our operating cost structure and enhance profitability. We also believe that Lifecore is well positioned for continued growth following investments to increase its production capacity of sterile injectable products to meet increasing customer demand. These developments demonstrate the progress we have made toward achieving our strategic priorities to improve operating margins at Curation Foods, and to invest in growth to drive topline momentum at Lifecore. We are committed to maximizing the value of our portfolio through sound and deliberate execution in each of our segments, while protecting the planet for future generations with sustainable business practices."
Landec price target lowered to $10 from $14 at Lake Street » 08:5203/3003/30/20
Lake Street analyst Chris…
Lake Street analyst Chris Krueger lowered the firm's price target on Landec to $10 from $14 and keeps a Buy rating on the shares ahead of the company's Q3 earnings report. In a research note to investors, Krueger says he thinks Landec can hit its recently reduced guidance ranges, although his estimates are at the low end of guidance. Its Lifecore segment is performing well, while its Curation Foods segment continues to work through an aggressive turnaround, the analyst adds.