According to Benzinga Pro, during Q2, Lancaster Colony (NASDAQ:LANC) earned $34.37 million, a 12.12% increase from the preceding quarter. Lancaster Colony also posted a total of $428.43 million in sales, a 9.28% increase since Q1. Lancaster Colony earned $30.66 million, and sales totaled $392.06 million in Q1.
What Is ROIC?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, Lancaster Colony posted an ROIC of 4.77%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, Lancaster Colony posted an ROIC of 4.77%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For Lancaster Colony, the positive return on invested capital ratio of 4.77% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Analyst Predictions
Lancaster Colony reported Q2 earnings per share at $1.25/share, which did not meet analyst predictions of $1.49/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
