Jefferies: Penford Corp. Concludes Q2 with Loss Despite Core Business Improvement

According to a report by Jefferies, Penford Corp.

completed Q2 down $0.03, however, gross margins and sales were up. Jefferies stated, “Penford reported a Q2 loss of $0.03. Gross margins improved 170bps to 10.9%. To reflect better top-line trends, the Carolina Starches acquisition and the redemption of $20m preferred stock, we are raising FY12E EPS by $0.05 to $0.20.” Jefferies maintains its Buy rating and $9 PT on PENX, which closed yesterday at $6.86.