FARM Earnings Prediction
The chart below shows how FARM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FARM sees a +2.18% change in stock price 10 days leading up to the earnings, and a +3.59% change 10 days following the report. On the earnings day itself, the stock moves by -2.77%. This data can give you a slight idea of what to expect for the next quarter's release.
FARM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
81.89M
2.58%
-4.22%
Gross Margin
37.60%
11.08%
15.55%
Operating Margin
-10.84%
8.62%
22.35%
Net Margin
-1.60%
-19.19%
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EPS
-0.06
-84.62%
-97.42%
No Data Available
FARM Earnings Analysis
Farmer Bros Co Corporation (FARM.O) Earnings Conference Call
Positive
EBITDA Improvement Analysis: Adjusted EBITDA improved to $1,400,000, a $1,900,000 increase year over year from a loss of $500,000, and a nearly $3,000,000 improvement from a loss of $1,600,000 in the previous quarter.
Gross Margin Expansion: Gross margin expanded by 630 basis points year over year to 43.9%, up from 37.6% in the same quarter last year, and increased by 510 basis points sequentially from 38.8% last quarter.
Sales and Profit Growth: Net sales increased by $3,200,000, or nearly 4%, to $85,100,000 compared to the first quarter of last year, contributing to a gross profit increase of $6,500,000 to $37,300,000.
Operating Cash Flow Improvement: Cash flow from operating activities improved to positive $2,500,000, representing a $9,600,000 improvement compared to negative $7,100,000 in the first quarter of last year, marking five consecutive quarters of improved cash flow.
Operating Expenses Reduction: Operating expenses declined by $1,200,000 or 3.2% of net sales year over year when adjusted for asset sales, reflecting operational efficiencies and progress in optimizing the cost structure.
Negative
Rising Operating Expenses: Operating expenses increased to $40,100,000 or 47.2% of net sales, up from $32,900,000 or 40.1% of net sales year over year, indicating rising costs that outpaced sales growth.
Quarterly Net Loss Increase: Net loss for the quarter was $5,000,000, a significant increase from a net loss of $1,600,000 in the same quarter last year, reflecting deteriorating financial performance.
Asset Management Decline: The company reported a $1,700,000 net loss related to asset disposals this quarter, contrasting with $6,800,000 in net gains from asset sales in the same quarter last year, highlighting a negative shift in asset management.
Sales Growth Challenges: Despite a $3,200,000 increase in net sales, the overall financial results indicate that the company is not achieving the top line growth necessary for significant scale and long-term growth, as emphasized by management.
Market Volatility Impact: The company acknowledged ongoing volatility in coffee commodity markets and macroeconomic conditions, suggesting that future financial results may not be linear and could face further challenges.
FARM FAQs
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FARM Earning Call Sentiment
Earnings call transcript: Farmer Bros. Co Q1 2024 shows improved margins
FARM.O
4.05%Positive
The earnings call presents a mixed picture: financial performance shows improvement in EBITDA and gross margin, but challenges remain with net loss and macroeconomic headwinds. The Q&A section highlights positive churn trends and route optimization, but lacks clarity on the new brand's impact. The absence of a shareholder return plan and potential asset disposals add uncertainty. Overall, the sentiment is neutral, reflecting both positive operational efficiencies and ongoing risks.
