On The Market Citrus Fruits Company Limoneira Beats On Q4 Revenue & Posts EPS In-Line: Details
Portfolio Pulse from Lekha Gupta
Limoneira Co (NASDAQ:LMNR) reported Q4 FY23 revenue of $41.4 million, a 4% increase, surpassing the consensus of $37.8 million. Agribusiness revenue increased, and the company sold approximately 550,000 cartons of fresh lemons. However, there was no avocado revenue, and the company reported an increased operating loss of $(9.7) million. Adjusted EBITDA loss improved to $(1.3) million, and adjusted EPS loss was in line with consensus. The company used $(15.9) million in net cash for operating activities and ended with $3.6 million in cash. LMNR expects challenges due to supply chain and inflation but projects increased lemon and avocado volumes in FY24. The company plans to sell non-strategic assets for expected proceeds of $50 million and has adjusted cash flow projections to $131 million over nine years. The Board is exploring strategic alternatives to maximize stockholder value. LMNR shares closed up 1.32% at $19.19.

December 22, 2023 | 12:26 pm
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NEUTRAL IMPACT
Limoneira Co reported higher Q4 revenue and in-line EPS but faced increased operating losses. The company is selling assets and exploring strategic alternatives, indicating potential restructuring or sale.
The positive revenue beat and in-line EPS may support the stock price, but the increased operating loss and the strategic review process could create uncertainty. The asset sales indicate a focus on improving financials, which could be positive in the long term, but the short-term impact is likely neutral as investors digest the mixed results and await the outcome of the strategic review.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100