Limoneira Company (NASDAQ:LMNR) has significantly raised its expectations on avocado volumes this year to take advantage of higher prices for the fruit.
"We now expect avocado volumes to be in the range of 14.5 million to 15.5 million pounds for fiscal year 2024 compared to previous guidance of 9 million to 10 million pounds, a more than 50% increase compared to prior guidance," CEO Harold Edwards said on Monday during a third-quarter earnings call with analysts.
"We expect to complete the avocado harvest in the fourth quarter with approximately 4 million to 5 million pounds remaining. Keep in mind, we expect our fourth quarter to represent a record in avocado volume due to our timing and ability to hold the fruit to match a higher pricing environment."
The company recorded $13.9 million of avocado revenue in the third quarter of fiscal year 2024, compared to $3.5 million in the third quarter of last fiscal year.
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About 8.86 million pounds of avocados were sold in aggregate during the third quarter of fiscal year 2024 at a $1.57 average price per pound, compared to approximately 2.82 million pounds sold at a $0.99 average price per pound during the third quarter of fiscal year 2023.
Limoneira posted $63.3 million in net revenue for this year's third quarter, up from $52.5 million a year ago.
Limoneira expects to expand avocado production by 1,000 acres over the next three years to take advantage of robust consumer demand but expects volume to be lower next year as a result of the yearly alternate bearing nature of avocado trees, CFO Mark Palamountain said.
The company expects avocado pricing to be lower in 2025 despite forecasting lower volume that year, he said.
"The company believes avocado pricing may be slightly lower compared to the current year pricing environment due to international circumstances," he said.
Price Action: Shares of Limoneira were down 3.2% to $24.20 at the time of publication Tuesday.
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