Limoneira Co. (LMNR) shares are currently down by 3% in pre-market trading. This decline follows the Citrus Agribusiness company's decision to maintain its fiscal 2025 forecast, reflecting concerns about weak avocado volume, despite reporting a narrowed net loss in the fourth quarter.
In the fourth quarter, the net loss attributable to shareholders decreased to $1.99 million, or $0.11 per share, compared to a net loss of $3.58 million, or $0.20 per share, in the same quarter of the previous year.
The company's adjusted net loss also improved, narrowing to $1.56 million or $0.09 per share, from the previous year's loss of $2.59 million, or $0.15 per share.
Adjusted EBITDA saw a positive turnaround, rising to $1.20 million from a loss of $1.31 million reported in the 2023 quarter.
Net revenue increased to $43.87 million, up from $41.44 million a year earlier.
Looking ahead to fiscal 2025, Limoneira expects fresh lemon volumes to range between 5.0 million and 5.5 million cartons, while avocado volumes are projected to be between 7.0 million and 8.0 million pounds.
However, the company continues to predict a decline in avocado volumes for fiscal 2025 compared to 2024. This reduction is due to the alternate bearing cycle characteristic of avocado trees.
Nonetheless, Limoneira is optimistic about its EBITDA potential, with plans to expand avocado production by 1,000 acres through fiscal year 2027, driven by strong consumer demand trends.
In pre-market trading, LMNR is currently trading 2.63% lower, at $26.12.
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