Local Bounti posts quarterly loss, misses earnings estimates
Revenue declines 18% year-over-year as controlled-environment agriculture firm falls short of analyst forecasts.
Local Bounti Corp. reported a wider-than-expected quarterly loss on Tuesday, with earnings per share missing estimates by $0.18 and revenue falling short of projections.
The controlled-environment agriculture company posted a net loss of $21.3 million, or $0.45 per share, for the three months ended June 30, compared with a loss of $12.1 million, or $0.26 per share, in the same period last year. Analysts had expected a loss of $0.27 per share, according to a Refinitiv poll.
Total revenue declined 18% year-over-year to $20.7 million, below the $22.5 million consensus estimate. The drop reflects weaker demand and pricing pressures in the fresh produce market, the company said.
Local Bounti, which operates vertical farms, cited macroeconomic headwinds, including inflation and supply chain disruptions, as contributing factors to its performance. The company also noted that it continues to invest in scaling operations and expanding its retail partnerships.
Shares of Local Bounti were down 5% in pre-market trading following the report.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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