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Limoneira Posts Upbeat Q2 Results, But Issues Weak Earnings Forecast


Limoneira Company (NASDAQ: LMNR) reported better-than-expected results for its fiscal second quarter. However, the company issued a weak earnings forecast for the full year.

The Santa Paula, California-based company posted quarterly earnings of $2.6 million, or $0.17 per share, compared to $2.1 million, or $0.15 per share, in the year-earlier period.

Its revenue surged to $28.3 million from $24.8 million. However, analysts were expecting a profit of $0.14 per share on revenue of $25.66 million.

Agribusiness revenue jumped to $26.9 million in the latest quarter, versus $23.6 million in the year-ago quarter. Rental operations revenue rose to $1.3 million from $1.2 million, while Real estate development revenue slipped to $18,000 from $31,000. Avocado revenue for the second quarter climbed to $4.1 million, versus $1.2 million.

Costs and expenses increased to $24.1 million for the second quarter, versus $21.6 million in the year-ago quarter.

Operating income for the second quarter climbed to $4.1 million from $3.2 million, while EBITDA rose to $5.0 million from $4.1 million.

Harold Edwards, President and Chief Executive Officer, stated, "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. 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."

For the year, Limoneira projects earnings of $0.36 to $0.40 per share, versus prior forecast of $0.42 to $0.46 per share. Analysts had expected earnings of $0.55 per share. It also expects FY15 operating income of $7.6 million to $8.1 million.

Limoneira shares fell 1.79 percent to $21.89 in the after-hours trading session.


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