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

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

LOCL stock traded down $0.11 during trading on Wednesday, hitting $1.15. The company had a trading volume of 37,641 shares, compared to its average volume of 596,620. The firm has a market capitalization of $26.21 million, a P/E ratio of -0.31 and a beta of 2.72. The company has a 50 day simple moving average of $1.24 and a 200-day simple moving average of $1.53. Local Bounti has a 52-week low of $0.95 and a 52-week high of $4.00.

Analyst Ratings Changes

Separately, Weiss Ratings raised shares of 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 an average rating of “Sell”.

Insiders Place Their Bets

In other news, CEO Kathleen Valiasek sold 118,720 shares of the firm’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $1.30, for a total transaction of $154,336.00. Following the transaction, the chief executive officer owned 1,524,860 shares in the company, valued at approximately $1,982,318. This trade represents a 7.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible 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 currently owned by company insiders.

Institutional Investors Weigh In On Local Bounti

A hedge fund recently bought a new position in Local Bounti stock. Walleye Trading LLC bought a new position in shares of Local Bounti Corporation (NYSE:LOCL) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 23,364 shares of the company’s stock, valued at approximately $50,000. Walleye Trading LLC owned 0.10% of Local Bounti as of its most recent SEC filing. Hedge funds and other institutional investors own 28.01% of the company’s stock.

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.