Landec Corp. LNDC saw a big move last session, as the company’s shares fell by nearly 7% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. Notably, LNDC gained about 6% from Nov 19 to Dec 7, before it slumped nearly 7% yesterday.
On Dec 8, the company announced that for the second quarter of fiscal 2016, it now expects net income to decrease roughly 45% compared to the second quarter of fiscal 2015.
This slump shouldn’t be too much of a surprise to investors, as though this temperature-activated and other specialty polymer products provider has seen no revisions in either direction in the past few weeks, its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
LNDC currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.0%.
A better-ranked stock in the Basic Materials sector is Rayonier Advanced Materials Inc. RYAM, which currently carries a Zacks Rank #1 (Strong Buy).
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