Lancaster Colony Corporation (NASDAQ: LANC) saw its shares surge 5.86% in Tuesday's pre-market trading, despite reporting quarterly earnings that missed analyst estimates. The specialty food maker's stock rallied on the back of record sales and an upbeat outlook for continued growth.
For the fiscal second quarter ended December 31, 2024, Lancaster Colony reported earnings of $1.78 per share, falling short of the consensus estimate of $1.93 per share. However, the company posted a 4.8% year-over-year increase in net sales to a record $509.3 million, surpassing expectations of $495.5 million.
The strong sales performance was driven by robust growth in both the Retail and Foodservice segments. The Retail segment saw a 6.3% increase in net sales to $280.8 million, fueled by the company's expanding licensing program for brands like Texas Roadhouse, Buffalo Wild Wings, Subway, and Olive Garden, as well as solid demand for its own Marzetti brand products, including caramel dips and refrigerated dressings. The Foodservice segment posted a 3% rise in net sales to $228.5 million, benefiting from higher demand from several of its core national chain restaurant accounts and increased sales of its branded products.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.