Overview

• U.S. lemon and avocado grower reported fiscal Q2 revenue of $23.9 mln, compared to last year's $35.1 mln

• Adjusted EPS for fiscal Q2 missed analyst expectations

• Company raised full-year avocado volume guidance and announced Agromin JV, Paso Robles vineyard sale

Outlook

• Company raises FY 2026 avocado volume guidance to 5.5 mln-6.5 mln pounds from 5 mln-6 mln

• Company maintains FY 2026 fresh lemon volume guidance at 4 mln-4.5 mln cartons

• Limoneira expects positive adjusted EBITDA in Q3 and Q4 FY 2026

Result Drivers

• LEMON SALES SHIFT - Co says revenue decline was driven by the transition to Sunkist for lemon sales and marketing, the partnership resulted in a significant shift in the quarterly sales cadence for lemons compared to historical patterns

• BUSINESS EXITS - Exit from brokerage, Chilean farming, and farm management businesses further reduced revenue

• ASSET IMPAIRMENTS AND DISPOSALS - Higher costs and operating loss due to $9.3 mln impairment of Windfall Farms and $7.8 mln loss on disposal of Arizona lemon orchards

Company press release: ID:nBw3fr7rDa

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 $19.00, about 59.9% above its June 8 closing price of $11.88

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 150 three months ago

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