Limoneira Q3 Result Manages To Top Consensus; Sales Decline 8.4%

Limoneira Co LMNR reported a third-quarter FY21 sales decline of 8.4% year-on-year, to $49.12 million, beating the analyst consensus of $48.82 million.
Agribusiness revenue fell 8.4% Y/Y. Fresh lemon sales decreased 31.1% Y/Y, avocado revenue fell 32.8%, while orange revenue declined 9.1%.
Adjusted EBITDA of $7.8 million rose 30% Y/Y. Selling, general and administrative expenses increased 3.4% Y/Y.
The operating margin was 6.9%, and operating income for the quarter rose 86% to $3.4 million.
The company held $0.8 million in cash and equivalents as of July 31, 2021. Net cash provided by operating activities totaled $16.8 million for the nine months ended July 31, 2021.
Adjusted EPS of $0.20 beat the consensus of $0.18.
"Our results were partially offset by the reduced sizing of our avocado fruit due to lack of rainfall," said CEO Harold Edwards.
Outlook: Limoneira said the COVID-19 pandemic will continue to affect the company's foodservice business and industry logistics on a global basis. It expects lemon prices to increase in FY22 compared to FY21.
Price Action: LMNR shares closed higher by 1.41% at $15.77 on Wednesday.

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