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SANTA PAULA, Calif. - Limoneira Company (NASDAQ:LMNR), a leading agribusiness, announced today the approval of a share repurchase program, authorizing up to $30 million of its common stock buyback. This decision follows the conclusion of its exploration for potential strategic alternatives, initiated on December 1, 2023. The announcement comes as the stock trades near its 52-week low of $17.80, having declined over 24% year-to-date. According to InvestingPro analysis, the company appears to be trading above its Fair Value. Despite the end of this formal review process, the company reaffirms its dedication to a value creation strategy designed to enhance long-term shareholder value.
According to Harold Edwards, President and CEO, the share repurchase program demonstrates the board’s strong belief in the company’s strategic direction and their view that the current stock price does not fully reflect Limoneira’s potential. With a market capitalization of $334 million and a consistent 17-year track record of dividend payments, currently yielding 1.62%, the company maintains a moderate debt level while pursuing growth. Edwards outlined the company’s strategy, which includes selling non-core assets, real estate development, land use conversion, water monetization, and expansion in the avocado industry, aiming to strengthen the company’s position as a major avocado grower in the United States. InvestingPro subscribers have access to 14 additional key insights about Limoneira’s financial health and growth prospects.
The repurchase of common stock will comply with securities laws and may occur through open market or privately negotiated transactions. The program’s details, such as the extent and timing of repurchases, will be subject to market conditions, regulatory requirements, and other corporate considerations.
Limoneira, founded in 1893 and headquartered in Santa Paula, California, has evolved into a prominent integrated agribusiness with operations spanning across California, Arizona, Chile, and Argentina. The company is recognized for its sustainable practices and specializes in producing lemons, avocados, and other crops globally.
The company’s forward-looking statements indicate plans and expectations for the future, subject to various factors that could impact actual results. These include changes in laws, weather conditions, water supply disruptions, supply chain challenges, and market volatility. Limoneira has stated that it does not intend to update these forward-looking statements unless required by law.
This news is based on a press release statement from Limoneira Company. For a comprehensive analysis of Limoneira’s financial health, growth prospects, and detailed valuation metrics, investors can access the full InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.
In other recent news, Limoneira Company reported a narrower first-quarter loss as it continues to optimize its revenue mix and transition to an asset-lighter model. For the quarter ending January 31, 2025, Limoneira posted a net loss of $0.18 per share, slightly wider than analysts’ expectations of a $0.17 per share loss, but an improvement from the $0.21 per share loss in the same quarter last year. Revenue for the quarter was $32.85 million, which fell short of the $40 million consensus estimate and decreased from $39.7 million in the prior-year period. This revenue decline was primarily due to lower fresh lemon prices, with average prices per carton dropping to $18.44 from $21.06 a year ago.
Despite missing revenue estimates, Limoneira’s operating loss improved by 31% year-over-year to $5.3 million, highlighting the benefits of its cost reduction initiatives. The company also reduced agribusiness costs and expenses by 14% compared to the first quarter of fiscal 2024. Limoneira reiterated its full-year guidance for fresh lemon volumes of 5.0 million to 5.5 million cartons and avocado volumes of 7.0 million to 8.0 million pounds for fiscal year 2025. Additionally, the company reported progress in its water rights monetization efforts, selling water pumping rights in the Santa Paula Basin for $1.7 million during the quarter.
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