By Tess Stynes
Landec Corp.'s /zigman2/quotes/202795542/composite LNDC +1.51% fiscal third-quarter earnings surged as the developer of food packaging and other polymer-based products said revenue growth was driven by its Apio business that includes its fresh-cut packaged vegetable business segment.
For the year, the company now expects earnings at the top end of its earlier estimate for growth of 30% to 40% and raised its revenue growth forecast to 9% to 10%, from its earlier estimate for at least 5%.
Landec--which makes temperature-activated packaging like "breatheable" wrap for produce and other products--has continued to benefit from strong growth in its Apio business.
For the quarter ended Feb. 26, Landec reported a profit of $4.8 million, or 18 cents a share, up from $2.3 million, or 9 cents a share, a year earlier. The company in January expected earnings would be roughly the same as the 13 cents a share it posted for its fiscal second quarter.
Revenue increased 9% to $80.1 million. Analysts polled by Thomson Reuters recently projected $73 million.
Gross margin fell to 16.4% from 17%.
The Apio food-products business reported revenue growth of 15%, driven by its value-added, fresh-cut vegetable segment where revenue jumped 18% amid a 24% increase in volume.
Shares of Landec, which affirmed its guidance for the current quarter, were flat at $7 in after-hours trading. Through the close, the stock is up 27% this year.