Local Bounti (NYSE:LOCL) Posts Quarterly Earnings Results, Misses Estimates By $0.18 EPS

Local Bounti (NYSE:LOCL) released its quarterly earnings data on Wednesday. The company reported ($0.68) EPS for the quarter, missing analysts’ consensus estimates of ($0.50) by ($0.18), FiscalAI reports. The company had revenue of $13.85 million for the quarter, compared to analyst estimates of $22.00 million.

Here are the key takeaways from Local Bounti’s conference call:

• Revenue increased 14% year over year to $13.9 million, while adjusted EBITDA loss improved 17% to $5.8 million and adjusted G&A declined 17%.
• Commercial momentum continued with new retail launches, expanded supply agreements, and a planned pilot of single-serve salad kits in approximately 400 Mid-Atlantic stores; existing accounts across roughly 13,000 doors are tracking in line with expectations.
• Operational improvements are raising capacity and lowering costs, including approximately 10% higher yield capacity after tower upgrades, a potential 20% yield improvement from California investments, and a 20% year-over-year reduction in seed costs.
• Cash and restricted cash fell to $10.1 million from $18.8 million in the prior quarter due to operating cash use, while adjusted gross margin declined to 27% from 30% a year earlier because of temporary packing inefficiencies.
• After quarter-end, an existing strategic investor provided an additional $12.5 million, adding financial flexibility as Local Bounti works toward positive adjusted EBITDA; management expects continued improvement in the second half of the year.

Local Bounti Stock Down 8.7%

Shares of LOCL traded down $0.11 during trading hours on Wednesday, hitting $1.15. The company had a trading volume of 37,640 shares, compared to its average volume of 596,620. Local Bounti has a 12 month low of $0.95 and a 12 month high of $4.00. The business has a fifty day moving average of $1.24 and a 200-day moving average of $1.53. The firm has a market cap of $26.21 million, a price-to-earnings ratio of -0.31 and a beta of 2.72.

Insider Activity

In other news, CEO Kathleen Valiasek sold 118,720 shares of the company’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $1.30, for a total transaction of $154,336.00. Following the completion of the transaction, the chief executive officer directly owned 1,524,860 shares in the company, valued at approximately $1,982,318. This represents a 7.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 21.00% of the company’s stock.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Local Bounti stock. Walleye Trading LLC acquired a new stake in Local Bounti Corporation (NYSE:LOCL) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 23,364 shares of the company’s stock, valued at approximately $50,000. Walleye Trading LLC owned 0.10% of Local Bounti at the end of the most recent reporting period. 28.01% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Weiss Ratings upgraded shares of Local Bounti from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Sell rating, According to MarketBeat, Local Bounti presently has an average rating of “Sell”.

Local Bounti Company Profile

Local Bounti Inc is a technology-driven indoor farming company that cultivates non-GMO leafy greens, microgreens and culinary herbs in controlled environment agriculture (CEA) facilities. By leveraging its proprietary Hybrid Growing System, the company maintains precise control over lighting, temperature and nutrient delivery, enabling year-round production of high-quality produce free from pesticides and seasonality constraints.

Headquartered in Montana, Local Bounti operates multiple cultivation centers across the United States, each designed to maximize water efficiency and minimize land use.