Benzinga | Sep 9, 2021 06:29AM EDT

Limoneira Q3 Result Manages To Top Consensus; Sales Decline 8.4%

* Limoneira Co (NASDAQ:LMNR) reported a third-quarter FY21 sales decline of 8.4% year-on-year, to $49.12 million, beating the analyst consensus of $48.82 million.

* Agribusiness revenue fell 8.4% Y/Y. Fresh lemon sales decreased 31.1% Y/Y, avocado revenue fell 32.8%, while orange revenue declined 9.1%.

* Adjusted EBITDA of $7.8 million rose 30% Y/Y. Selling, general and administrative expenses increased 3.4% Y/Y.

* The operating margin was 6.9%, and operating income for the quarter rose 86% to $3.4 million.

* The company held $0.8 million in cash and equivalents as of July 31, 2021. Net cash provided by operating activities totaled $16.8 million for the nine months ended July 31, 2021.

* Adjusted EPS of $0.20 beat the consensus of $0.18.

* "Our results were partially offset by the reduced sizing of our avocado fruit due to lack of rainfall," said CEO Harold Edwards.

* Outlook: Limoneira said the COVID-19 pandemic will continue to affect the company's foodservice business and industry logistics on a global basis. It expects lemon prices to increase in FY22 compared to FY21.

* Price Action: LMNR shares closed higher by 1.41% at $15.77 on Wednesday.