Limoneira Co (NASDAQ:LMNR), a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, stock fell 2.44% (As on September 10, 11:26:31 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the third quarter of FY 24. The company anticipates reaching a milestone as the avocado segment is expected to contribute approximately four million to five million pounds in the seasonably softer fourth quarter for the first time in the company’s history. These results validate the strategic decision to significantly expand the avocado production by 1,000 acres over the next three years. In addition to the agricultural success, the real estate development joint venture, Harvest at Limoneira, has seen increased momentum in the current lower interest rate environment with steady home sales. The expansion of avocado production, coupled with the ongoing expected earnings from Harvest, reinforces the confidence in achieving strong EBITDA growth into the future.
Moreover, Agribusiness revenue was $61.8 million, compared to $51.1 million in the third quarter of last fiscal year. Other operations revenue was $1.5 million, compared to $1.4 million in the third quarter of last fiscal year. Agribusiness revenue in the third quarter of fiscal year 2024 includes $25.8 million in fresh packed lemon sales, compared to $24.2 million of fresh packed lemon sales during the same period of fiscal year 2023. Approximately 1,400,000 cartons of U.S. packed fresh lemons were sold in aggregate during the third quarter of fiscal year 2024 at a $18.43 average price per carton, compared to approximately 1,352,000 cartons sold at a $17.92 average price per carton during the third quarter of fiscal year 2023.
The Company recognized $13.9 million of avocado revenue in the third quarter of fiscal year 2024, compared to $3.5 million in the third quarter of last fiscal year. Approximately 8,855,000 pounds of avocados were sold in aggregate during the third quarter of fiscal year 2024 at a $1.57 average price per pound, compared to approximately 2,822,000 pounds sold at a $0.99 average price per pound during the third quarter of fiscal year 2023.
LMNR in the third quarter of FY 24 has reported the adjusted earnings per share of 42 cents, beating the analysts’ estimates for the adjusted earnings per share of 32 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 21 percent to $63.31 million in the third quarter of FY 24, beating the analysts’ estimates for revenue by 0.85%.
On the other hand, Lake Street downgraded Limoneira to Hold from Buy with an unchanged price target of $25.