Farmer Bros Q2 net sales drop

Overview

• Coffee roaster's fiscal Q2 net sales fell 1% yr/yr

• Company reported a net loss of $4.9 mln for fiscal Q2

• Adjusted EBITDA for fiscal Q2 was $484,000, down from $5.9 mln last year

Outlook

• Farmer Bros. expects gross margin to stay above 35% for fiscal 2026

• Company focuses on growing top-line revenue amid economic pressures

Result Drivers

• GROSS MARGIN - Gross margin remained above 35% despite higher cost of goods sold and economic pressures, per CEO John Moore

• COST MANAGEMENT - Co reported a $700,000 decrease in general and administrative expenses, contributing to lower operating expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Farmer Bros Co is $2.25, about 40.6% above its February 12 closing price of $1.60

Press Release: ID:nGNX3vDkyX

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