SANTA PAULA, CA - Limoneira has topped Wall Street expectations with its latest Q2 2015 financial results. The company posted second-quarter revenue of $28.3 million (compared to $24.8 million in Q2 2014) in the second quarter, beating the average estimates of four analysts surveyed by Zacks Investment Research by $2.6 million.
During the second quarter, Limoneira’s agribusiness revenue was $26.9 million, compared to $23.6 million in the second quarter last year, reflecting higher lemon, avocado, and specialty citrus and other crop revenue partially offset by lower orange revenue.
“We are pleased to report solid top line revenue growth of 14% in the second quarter, which reflects increased sales for lemons, avocados, and specialty crops,” said Harold Edwards, President and CEO. “We also successfully leveraged our operating costs across higher sales volume, enabling us to increase our operating income by 28% and EBITDA by 24% in the second quarter.”
According to the report, costs and expenses for Q2 2015 were $24.1 million, compared to $21.6 million in the same quarter last year. The year-over-year increase in operating expenses primarily reflects additional agribusiness costs mainly associated with higher harvest costs due to increased volume of avocados, oranges, and specialty citrus harvested, as well as higher packing and growing costs.
Over the quarter, Limoneira increased its total lemon tree acreage by expanding its agricultural lease agreement with Cadiz. Edwards also stated in the report that the company is on-track to complete the expansion of its Santa Paula packing house this year, which is expected to increase efficiency, enhance operating margins, and double its total annual capacity.
“We currently have approximately 1,000 acres of non-bearing lemon orchards in development that are expected to become productive over the next few years, which will utilize some of the new capacity,” continued Edwards.
Other highlights from the company’s financial report include:
- $2.6 million of orange revenue in the second quarter of fiscal 2015 compared to $3.4 million in the same period of last year
- Specialty citrus and other crop revenues were $1.4 million in the second quarter of fiscal 2015, on increased sales volume partially offset by lower prices, compared to $0.9 million in Q2 2014
- Lemon sales were comprised of approximately 76% to U.S. and Canada-based customers, 20% to domestic exporters, and 4% to international customers
As of 2:00 PM EDT, Limoneira's stock was down $0.32 to $21.97, a decrease of 1.44%.
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