Local Bounti (NYSE:LOCL) Posts 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 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 Price Performance

Shares of LOCL opened at $1.10 on Thursday. The firm has a market capitalization of $25.08 million, a P/E ratio of -0.30 and a beta of 2.72. Local Bounti has a one year low of $0.95 and a one year high of $4.00. The business has a fifty day moving average of $1.23 and a 200 day moving average of $1.52.

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, Based on data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Insider Activity at Local Bounti

In related news, CEO Kathleen Valiasek sold 118,720 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $1.30, for a total transaction of $154,336.00. Following the completion of the sale, the chief executive officer directly owned 1,524,860 shares in the company, valued at approximately $1,982,318. The trade was a 7.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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.

Institutional Investors Weigh In On Local Bounti

An institutional investor recently bought a new stake in Local Bounti stock. Walleye Capital LLC bought a new position in Local Bounti Corporation (NYSE:LOCL) during the fourth quarter, according to its most recent disclosure with the SEC. The firm bought 322,829 shares of the company’s stock, valued at approximately $691,000. Walleye Capital LLC owned 1.45% of Local Bounti as of its most recent filing with the SEC. 28.01% of the stock is currently 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.