Limoneira Shares Slide 10% After Q3 Earnings Miss
Limoneira Shares Slide 10% After Q3 Earnings Miss
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Key Points
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Fresh lemon carton revenue increased to $27.3 million from $23.8 million, as the average price rose to $19.88 per carton from $17.02, partially offsetting weaker lemon volumes.
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Avocado revenue fell to $8.0 million from $8.5 million because average prices declined to $1.15 per pound, even as avocado volume increased.
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Limoneira said it was making progress toward $10 million in annual selling, general and administrative savings; quarterly SG&A declined to $4.0 million from $5.0 million.
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The Windfall Farms sale includes an expected September 14, 2026 closing date, subject to customary conditions, while cumulative impairment charges on the property have reached approximately $13.5 million. Long-term debt rose to $100.7 million from $72.5 million at the end of fiscal 2025.
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Limoneira’s fiscal 2027 avocado production is expected to exceed 10 million pounds, roughly 30% above the company’s fiscal 2026 forecast.
Limoneira's stock fell roughly 10% in after-hours trading after the citrus company reported fiscal third-quarter results that badly missed expectations. Revenue came in at $43.8 million, down from $47.5 million a year ago, while adjusted earnings totaled just $0.02 per share versus the $0.19 consensus estimate Chartmill. The company posted a net loss of $3.0 million, or $0.17 per share.
Lower lemon volumes, weaker avocado prices, and the spinoff of citrus brokerage operations to Sunkist drove the shortfall Yahoo Finance. However, Limoneira agreed to sell its Windfall Farms property for $15 million to shore up its balance sheet, and the company is targeting $10 million in annual cost cuts to help stabilize earnings.
Weak Lemon Volumes Outweigh Price Gains
Fresh lemon carton revenue actually climbed to $27.3 million from $23.8 million, as the average price jumped to $19.88 per carton from $17.02 MarketWatch. But this gain masked a deeper problem: lemon volumes fell short of expectations. The company has now lowered its fiscal lemon-volume outlook to the lower end of its prior range, signaling tighter supplies ahead.
Avocado Revenue Declines Despite Volume Growth
Avocado revenue slid to $8.0 million from $8.5 million as average prices fell to $1.15 per pound Yahoo Finance. Although avocado volumes increased, weak pricing crushed the topline. Looking ahead, Limoneira raised its fiscal 2026 avocado forecast to 7.0 million to 7.25 million pounds, and expects fiscal 2027 production to exceed 10 million pounds—roughly 30% higher than 2026.
Cost Cuts and Asset Sale Reshape the Balance Sheet
Limoneira is making real progress on expense reduction, cutting quarterly selling, general and administrative costs to $4.0 million from $5.0 million ScanX. The company aims for $10 million in annual SG&A savings. Meanwhile, the Windfall Farms sale—closing September 14, 2026—will bring in $15 million to pay down debt, which ballooned to $100.7 million from $72.5 million at fiscal year-end Yahoo Finance.
Adjusted EBITDA Surges But Market Remains Skeptical
Adjusted EBITDA jumped 30% to $3.9 million in the quarter, a bright spot in an otherwise weak earnings report ScanX. Yet analysts remain cautious: the consensus rating is Hold, with a price target of $18. The stock's 10% drop suggests investors are focused on the earnings miss and balance sheet stress rather than the operational improvement signs.
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