Coffee Foodservice Company Farmer Brothers Posts Mixed Q4 Earnings
Portfolio Pulse from Shivani Kumaresan
Farmer Brothers Company (NASDAQ:FARM) reported Q4 FY23 sales growth of 1% YoY to $85.496 million, beating the analyst consensus. However, gross profit decreased 22.7% to $27.8 million and the operating loss expanded to $(10.1) million from $(705,000) last year. The company held $5.4 million in cash and equivalents as of June 30, 2023. EPS of $(0.84) missed the consensus estimate of $(0.61). The company is planning for positive free cash flow by the fiscal year-end and is evaluating strategic opportunities to improve its liquidity position. FARM shares closed lower by 6.67% at $1.82 on Tuesday.

September 13, 2023 | 10:13 am
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Farmer Brothers reported mixed Q4 FY23 results with sales beating estimates but EPS missing. The company's gross profit and operating loss worsened YoY. Despite this, the company is planning for positive free cash flow by the fiscal year-end.
The mixed Q4 FY23 results, with sales beating estimates but EPS missing, and worsening gross profit and operating loss YoY, are likely to negatively impact the stock price in the short term. However, the company's plan for positive free cash flow by the fiscal year-end could provide some optimism for investors.
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