HomeBusinessFarmer Brothers (FARM) Experiences Q2 Loss, Tops Income Estimates

Farmer Brothers (FARM) Experiences Q2 Loss, Tops Income Estimates

This story initially appeared on Zacks

Farmer Brothers (FARM) got here out with a quarterly lack of $0.31 per share versus the Zacks Consensus Estimate of a lack of $0.27. This compares to lack of $0.19 per share a 12 months in the past. These figures are adjusted for non-recurring objects.

– Zacks

This quarterly report represents an earnings shock of -14.81%. 1 / 4 in the past, it was anticipated that this espresso and tea firm would submit a lack of $0.37 per share when it really produced a lack of $0.14, delivering a shock of 62.16%.

Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.

Farmer Brothers, which belongs to the Zacks Meals – Pure Meals Merchandise trade, posted revenues of $118.45 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.28%. This compares to year-ago revenues of $104.57 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.

The sustainability of the inventory’s fast value motion primarily based on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.

Farmer Brothers shares have misplaced about 15.6% for the reason that starting of the 12 months versus the S&P 500’s decline of -3.7%.

What’s Subsequent for Farmer Brothers?

Whereas Farmer Brothers has underperformed the market to date this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?

There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.

Empirical analysis reveals a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor report of harnessing the facility of earnings estimate revisions.

Forward of this earnings launch, the estimate revisions pattern for Farmer Brothers: combined. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You’ll be able to see the whole listing of at present’s Zacks #1 Rank (Robust Purchase) shares right here.

Will probably be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is -$0.19 on $119.1 million in revenues for the approaching quarter and -$0.82 on $458 million in revenues for the present fiscal 12 months.

Buyers must be aware of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Meals – Pure Meals Merchandise is at present within the prime 11% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.

Efficiency Meals Group (PFGC), one other inventory in the identical trade, has but to report outcomes for the quarter ended December 2021. The outcomes are anticipated to be launched on February 9.

This meals distributor is predicted to submit quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +34.3%. The consensus EPS estimate for the quarter has been revised 4.6% decrease over the past 30 days to the present degree.

Efficiency Meals Group’s revenues are anticipated to be $12.84 billion, up 87.6% from the year-ago quarter.

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