Overview
Arcadia Q3 revenue declines 15% yr/yr, missing analyst expectations
Net income for Q3 beats analyst estimates, driven by unrealized gain on ABVE stock
Arcadia maintains gross profit margins above 30% for 11th consecutive quarter
Outlook
Arcadia is pursuing resolution of outstanding balance with Above Food Ingredients Inc.
Company faces uncertainty in timing of Roosevelt Resources transaction due to government shutdown
Result Drivers
ZOLA REVENUE GROWTH - Year-to-date Zola revenues increased 26% due to expanded distribution and higher sales volumes
GROSS MARGINS - Gross profit margins exceeded 30% for the 11th consecutive quarter, supported by reduced SG&A expenses
REVENUE DECLINE FACTORS - Q3 revenue decline attributed to absence of GLA oil sales and lack of incremental sales to a major customer
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.3 mln | $1.9 mln (1 Analyst) |
Q3 Net Income | Beat | $856,000 | -$660,000 (1 Analyst) |
Q3 Operating Expenses | $2.45 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Arcadia Biosciences Inc is $12.00, about 67.5% above its November 6 closing price of $3.90
Press Release: ID:nGNX1pv4g3
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)