Lemon and avocado grower Limoneira's Q1 revenue beats estimates

Overview

• U.S. lemon and avocado grower reported Q1 revenue fell yr/yr but beat analyst expectations

Outlook

• Limoneira reiterates full-year 2026 guidance for lemon volumes of 4.0 mln to 4.5 mln cartons

• Company maintains full-year 2026 avocado volume guidance of 5.0 mln to 6.0 mln pounds

• Limoneira expects near-term water monetization in fiscal year 2026

Result Drivers

• SALES CADENCE SHIFT - Revenue fell as the Sunkist partnership shifted lemon sales to later quarters, resulting in lower Q1 volumes

• BUSINESS EXITS - Exiting brokerage and farm management businesses contributed to lower revenue

• COST REDUCTIONS - Total costs and expenses declined 27% due to lower agribusiness volumes and elimination of citrus sales and marketing costs after Sunkist transition

Company press release: ID:nBwbhG9K5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy"

• Wall Street's median 12-month price target for Limoneira Co is $18.50, about 35% above its March 11 closing price of $13.70

• The stock recently traded at 146 times the next 12-month earnings vs. a P/E of 463 three months ago

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