Limoneira shares fell 11.4% after the company reported third-quarter results below expectations and moved lemon volume guidance to the lower end of its range, citing higher U.S. lemon imports and lighter-than-anticipated sales. Investors appeared to discount the avocado growth and asset-monetization pipeline against near-term lemon weakness and execution risk.
- Third-quarter results came in below management’s expectations, primarily due to weaker lemon sales volume.
- The company expects to achieve only the lower end of its fiscal 2026 lemon volume guidance as imports pressure the U.S. market.
- Avocado performance was a key offset: stronger-than-expected volume prompted another increase to fiscal 2026 avocado guidance, with fiscal 2027 production expected to exceed 10 million pounds, approximately 30% above fiscal 2026.
- Adjusted EBITDA exceeded the prior-year third quarter, supported by higher agribusiness operating income and progress toward the targeted $10 million in annual SG&A savings.
- Management expects a $15 million Windfall Farms sale to close September 14, 2026, while also targeting additional water-asset monetization and continued real-estate proceeds; however, several longer-dated initiatives, including the organic recycling facility and further avocado acreage, are not expected to contribute materially until fiscal 2027 or later.
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