Arcadia Biosciences Q3 revenue falls

Reuters11-08
Arcadia Biosciences Q3 revenue falls 

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.)

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