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

Local Bounti (NYSE:LOCL) announced its quarterly earnings results on Wednesday. The company reported ($0.68) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.50) by ($0.18), FiscalAI reports. The company had revenue of $13.85 million for the quarter, compared to the consensus estimate 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 Down 8.7%

LOCL traded down $0.11 during midday trading on Wednesday, hitting $1.15. 37,640 shares of the company traded hands, compared to its average volume of 596,620. Local Bounti has a 52-week low of $0.95 and a 52-week high of $4.00. The company has a market capitalization of $26.21 million, a price-to-earnings ratio of -0.31 and a beta of 2.72. The business has a 50 day simple moving average of $1.24 and a two-hundred day simple moving average of $1.53.

Wall Street Analyst Weigh In

Separately, Weiss Ratings upgraded Local Bounti from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Insider Activity at Local Bounti

In other news, CEO Kathleen Valiasek sold 118,720 shares of the firm’s stock in a transaction that occurred 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 owned 1,524,860 shares in the company, valued at $1,982,318. This trade represents a 7.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 21.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Local Bounti

A hedge fund recently bought a new stake in Local Bounti stock. Walleye Trading LLC purchased a new stake in Local Bounti Corporation (NYSE:LOCL) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 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 owned by hedge funds and other institutional investors.

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.