BranchOut Food (NASDAQ:BOF) Issues Quarterly Earnings Results

BranchOut Food (NASDAQ:BOF) released its quarterly earnings data on Thursday. The company reported ($0.18) earnings per share for the quarter, beating the consensus estimate of ($0.20) by $0.02, FiscalAI reports. BranchOut Food had a negative return on equity of 146.52% and a negative net margin of 56.77%.The firm had revenue of $4.46 million during the quarter, compared to the consensus estimate of $4.00 million.

Here are the key takeaways from BranchOut Food’s conference call:

• Q3 revenue reached a record $4.45 million, while management guided to approximately $6 million–$7 million in Q4 revenue as production ramps to 70,000–80,000 kilograms per month.
• The Sam’s Club trial exceeded sell-through expectations and is converting to an everyday order estimated at roughly $8 million in annual revenue; additional opportunities include Target, Costco, and a potential $4 million–$6 million dried-cheese retail program.
• Management expects recurring orders and higher plant utilization to improve profitability, with potential margin benefits from buying raw materials in season and bringing packaging in-house; packaging investment of approximately $150,000–$200,000 could replace about $1.5 million of outsourced costs.
• Q3 gross margin was only 2%, pressured by off-season strawberry costs, air freight for Sam’s Club, first-time production inefficiencies, and low plant utilization.
• Liquidity remains a concern, with only about $200,000 in reported cash and substantial working-capital needs; management said it may seek additional debt or equity capital, creating potential financing and dilution risk.

BranchOut Food Price Performance

Shares of BranchOut Food stock traded down $0.29 on Friday, hitting $4.16. The company’s stock had a trading volume of 29,312 shares, compared to its average volume of 21,690. The company has a market capitalization of $63.71 million, a price-to-earnings ratio of -6.93 and a beta of 0.65. The firm has a fifty day moving average price of $4.16 and a 200-day moving average price of $3.81. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.42 and a current ratio of 0.87. BranchOut Food has a 1 year low of $1.93 and a 1 year high of $5.25.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in BOF. Virtu Financial LLC acquired a new stake in shares of BranchOut Food in the fourth quarter valued at about $35,000. Quadrature Capital Ltd purchased a new stake in BranchOut Food during the 4th quarter worth approximately $59,000. State Street Corp raised its holdings in shares of BranchOut Food by 82.7% during the fourth quarter. State Street Corp now owns 24,300 shares of the company’s stock valued at $77,000 after acquiring an additional 11,000 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of BranchOut Food in the fourth quarter valued at approximately $82,000. Finally, Renaissance Technologies LLC acquired a new stake in shares of BranchOut Food in the fourth quarter worth approximately $148,000. Hedge funds and other institutional investors own 2.59% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on BOF. Wall Street Zen upgraded BranchOut Food from a “strong sell” rating to a “sell” rating in a report on Tuesday, July 21st. Lake Street Capital began coverage on shares of BranchOut Food in a research note on Monday, August 3rd. They issued a “buy” rating and a $6.00 target price on the stock. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of BranchOut Food in a research report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $6.00.

BranchOut Food Company Profile

BranchOut Food Inc develops, markets, sells, and distributes plant-based dehydrated fruit and vegetable snacks, and powders in the United States. The company offers dehydrated fruit and vegetable-based snacks, including avocado chips, chewy banana bites, pineapple chips, brussels sprout crisps, and bell pepper crisps; avocado, banana, and blueberry powders; and industrial ingredients, such as bulk avocado powder, dried avocado pieces, and other fruit powders/pieces. It also provides chocolate covered fruit items and private label products for retailers.