Limoneira reports nearly triple net income for second quarter
Limoneira nearly tripled its second quarter net income compared to last year, with revenues that climbed to $35.4 million.
Net income came to $3.54 million during the quarter ended April 30, compared to $1.22 million for the second quarter of 2016. Earnings per share rose to 24 cents, up from 8 cents for the same period the previous year.
Lemon volume increased by more than 22 percent in the Santa Paula company’s agribusiness segment, which sold 958,000 cartons during the quarter, albeit at a lower price than the previous second quarter. Lemons sold at $21.50 per carton, down from $22.44, while avocado and orange prices both increased.
Costs and expenses also rose by nearly 22 percent to $30.7 million, despite a more than $2 per carton drop in lemon packing costs from the company’s new lemon packing facility, which came online a year ago.
Revenue for the first six months of the fiscal year was $65 million, or 8 cents per share, compared to $52.4 million and a 21 cent net loss per share for the same period in fiscal 2016.
The company will continue to expand its One World of Citrus marketing program, President and CEO Harold Edwards said in a statement.
“As we enter the third quarter of fiscal 2017, we remain confident that the key drivers of our growth that contributed to our first half performance will remain in place in the second half,” Edwards said, leading the company to update its earnings guidance from 48-52 cents per share to 51-55 cents per share.
Operating income for the year is expected to range from $14.7 million to $15.2 million. The company had $228,000 in cash on hand at the end of the quarter, with total current liabilities of $21.66 million.
Limoneira shares ended June 8 up 6.3 percent at $21.13.
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