BranchOut Food (NASDAQ:BOF) Issues Earnings Results

BranchOut Food (NASDAQ:BOF) posted its quarterly earnings data on Thursday. The company reported ($0.18) earnings per share for the quarter, topping the consensus estimate of ($0.20) by $0.02, FiscalAI reports. BranchOut Food had a negative return on equity of 138.86% and a negative net margin of 53.27%.The firm had revenue of $4.46 million for the quarter, compared to analysts’ expectations of $4.00 million.

Here are the key takeaways from BranchOut Food’s conference call:

• Q3 revenue reached a record $4.45 million, while management guided to approximately $6 million–$7 million in Q4 revenue as production ramps to 70,000–80,000 kilograms per month.
• The Sam’s Club trial exceeded sell-through expectations and is converting to an everyday order estimated at roughly $8 million in annual revenue; additional opportunities include Target, Costco, and a potential $4 million–$6 million dried-cheese retail program.
• Management expects recurring orders and higher plant utilization to improve profitability, with potential margin benefits from buying raw materials in season and bringing packaging in-house; packaging investment of approximately $150,000–$200,000 could replace about $1.5 million of outsourced costs.
• Q3 gross margin was only 2%, pressured by off-season strawberry costs, air freight for Sam’s Club, first-time production inefficiencies, and low plant utilization.
• Liquidity remains a concern, with only about $200,000 in reported cash and substantial working-capital needs; management said it may seek additional debt or equity capital, creating potential financing and dilution risk.

BranchOut Food Stock Down 3.9%

NASDAQ BOF traded down $0.17 during mid-day trading on Friday, hitting $4.28. The company’s stock had a trading volume of 15,224 shares, compared to its average volume of 76,458. BranchOut Food has a twelve month low of $1.93 and a twelve month high of $5.25. The firm has a market capitalization of $65.49 million, a price-to-earnings ratio of -7.25 and a beta of 0.65. The company has a current ratio of 0.87, a quick ratio of 0.42 and a debt-to-equity ratio of 0.27. The company’s 50 day simple moving average is $4.15 and its 200 day simple moving average is $3.81.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of BranchOut Food in a research note on Wednesday, June 24th. Wall Street Zen raised BranchOut Food from a “strong sell” rating to a “sell” rating in a report on Tuesday, July 21st. Finally, Lake Street Capital started coverage on shares of BranchOut Food in a research report on Monday, August 3rd. They set a “buy” rating and a $6.00 price objective for the company. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $6.00.

Institutional Trading of BranchOut Food

Institutional investors have recently made changes to their positions in the company. Stifel Financial Corp raised its position in BranchOut Food by 276.6% in the fourth quarter. Stifel Financial Corp now owns 386,000 shares of the company’s stock worth $1,227,000 after acquiring an additional 283,500 shares during the period. State Street Corp raised its position in shares of BranchOut Food by 82.7% in the fourth quarter. State Street Corp now owns 24,300 shares of the company’s stock valued at $77,000 after purchasing an additional 11,000 shares during the period. Jane Street Group LLC purchased a new stake in shares of BranchOut Food during the 4th quarter valued at approximately $82,000. Renaissance Technologies LLC purchased a new position in BranchOut Food in the 4th quarter valued at approximately $148,000. Finally, Quadrature Capital Ltd purchased a new stake in shares of BranchOut Food during the fourth quarter worth $59,000. Institutional investors own 2.59% of the company’s stock.

About BranchOut Food

BranchOut Food Inc develops, markets, sells, and distributes plant-based dehydrated fruit and vegetable snacks, and powders in the United States. The company offers dehydrated fruit and vegetable-based snacks, including avocado chips, chewy banana bites, pineapple chips, brussels sprout crisps, and bell pepper crisps; avocado, banana, and blueberry powders; and industrial ingredients, such as bulk avocado powder, dried avocado pieces, and other fruit powders/pieces. It also provides chocolate covered fruit items and private label products for retailers.