LMNR - Will Limoneira's Stock Rebound After Its Upcoming Earnings Report?
If a year-to-date share price loss of 1% is the chosen measure, then on the surface, Limoneira's (NASDAQ: LMNR) lemon harvest woes don't seem particularly troublesome. View the last trailing 12 months of the consumer staples stock's performance, however, and its state appears more serious. The LMNR symbol has lost 38% of its value over the last year, and problems related to the 2019 harvest are preventing it from recovering ground. Limoneira reports fiscal third-quarter 2019 earnings after the close of trading on Monday. That's likely to prove a pivotal report for the Santa Paula, California-based company.
Limoneira has dealt gamely with the consequences of heavy rainfall in southern California in the first six months of its fiscal year --the six months ended April 30, 2019). The rains resulted in an "overabundance" of large lemons, which has depressed carton pricing and volume across the industry.
After the company's second-quarter report in June, I observed that as harvesting progressed, Limoneira had been forced to cut its earnings estimates twice in as many quarters. In that article, I shared the progression of earnings reductions in the following table: