Lancaster Colony Corporation (NASDAQ:LANC) Just Released Its Full-Year Earnings: Here's What Analysts Think

It's been a mediocre week for Lancaster Colony Corporation (NASDAQ:LANC) shareholders, with the stock dropping 13% to US$174 in the week since its latest yearly results. Revenues of US$1.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$5.76, missing estimates by 3.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Lancaster Colony

Taking into account the latest results, the consensus forecast from Lancaster Colony's six analysts is for revenues of US$1.91b in 2025. This reflects a reasonable 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 17% to US$6.72. In the lead-up to this report, the analysts had been modelling revenues of US$1.94b and earnings per share (EPS) of US$6.91 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$201, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Lancaster Colony, with the most bullish analyst valuing it at US$236 and the most bearish at US$176 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Lancaster Colony's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Lancaster Colony.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lancaster Colony's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$201, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lancaster Colony. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lancaster Colony going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.