Limoneira Company (NASDAQ:LMNR) Just Reported, And Analysts Assigned A US$24.50 Price Target
It's been a sad week for Limoneira Company (NASDAQ:LMNR), who've watched their investment drop 12% to US$12.90 in the week since the company reported its full-year result. The results don't look great, especially considering that statutory losses grew 71% toUS$0.93 per share. Revenues of US$160m did beat expectations by 4.9%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Limoneira after the latest results.
After the latest results, the consensus from Limoneira's dual analysts is for revenues of US$126.9m in 2026, which would reflect a stressful 21% decline in revenue compared to the last year of performance. Limoneira is also expected to turn profitable, with statutory earnings of US$0.02 per share. Before this earnings report, the analysts had been forecasting revenues of US$123.6m and earnings per share (EPS) of US$0.03 in 2026. So it's pretty clear the analysts have mixed opinions on Limoneira after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
View our latest analysis for Limoneira
The consensus price target fell 13% to US$24.50, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 21% annualised decline to the end of 2026. That is a notable change from historical growth of 1.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Limoneira is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Limoneira. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Limoneira's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Limoneira that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.