Market News

Limoneira Sinks 6.4% On Wider-Than-Expected 4Q Loss

Shares of Limoneira Co. are down about 6.4% in Tuesday’s pre-market session after the agribusiness and real estate development company reported a wider-than-expected 4Q loss. Meanwhile, its 4Q revenue beat analysts’ estimates.

Limoneira (LMNR) reported a 4Q loss of $0.42 per share, compared to analysts’ expectations for a loss of $0.21 per share and the year-ago loss of $0.24. The company’s revenue of $29.8 million declined 18.4% year-over-year but exceeded the Street’s estimates of $29.2 million.

The decline in sales was due to food service closures and lower export demand amid the COVID-19 pandemic, which severely dented agribusiness sales in 4Q.

The company did not provide any guidance for fiscal 2021, but management said that it expects strong orange and avocado revenue “due to market factors and positive initial crop indicators.” (See LMNR stock analysis on TipRanks)

On Nov. 3, National Securities Corp. analyst Ben Klieve said, “We continue to believe LMNR represents a show-me stock, but is one where pricing momentum is building which provides visibility of improved financial performance over the next 12-24 months. We remain buyers behind this momentum.”

Klieve maintained a Buy rating and a price target of $20 (16.9% upside potential) on the stock. Shares have declined by about 4.6% over the last year.

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