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

Local Bounti (NYSE:LOCL) announced its earnings results on Wednesday. The company reported ($0.68) earnings per share for the quarter, missing the consensus estimate of ($0.50) by ($0.18), FiscalAI reports. The company had revenue of $13.85 million during the quarter, compared to analysts’ expectations 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 Trading Up 0.1%

Shares of Local Bounti stock traded up $0.00 during midday trading on Friday, reaching $1.14. The company had a trading volume of 771 shares, compared to its average volume of 589,032. The stock has a fifty day simple moving average of $1.22 and a 200 day simple moving average of $1.51. Local Bounti has a 1-year low of $0.95 and a 1-year high of $4.00. The company has a market capitalization of $26.01 million, a price-to-earnings ratio of -0.41 and a beta of 2.72.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

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

Hedge Funds Weigh In On Local Bounti

A hedge fund recently bought a new stake in Local Bounti stock. Walleye Trading LLC bought a new stake in Local Bounti Corporation (NYSE:LOCL) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 23,364 shares of the company’s stock, valued at approximately $50,000. Walleye Trading LLC owned about 0.10% of Local Bounti at the end of the most recent quarter. Institutional investors and hedge funds own 28.01% of the company’s stock.

About Local Bounti

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.