Farmer Brothers (NASDAQ:FARM) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Farmer Brothers reported a quarterly earnings per share of ($0.02), exceeding expectations by $0.17, as analysts had projected ($0.19).
• The company's stock price increased to $2.33, with a trading volume significantly higher than its average, indicating a potential interest in the stock.
• Institutional investors have increased their holdings in Farmer Brothers, with significant investments from firms like Goldman Sachs, which raised its stake by 253.7% in the first quarter.

Farmer Brothers (NASDAQ:FARM - Get Free Report) issued its earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.19) by $0.17, Zacks reports. The company had revenue of $85.14 million for the quarter, compared to analysts' expectations of $81.66 million. Farmer Brothers had a negative net margin of 4.24% and a negative return on equity of 16.12%.

Farmer Brothers Price Performance

Farmer Brothers stock remained flat at $1.85 during trading hours on Tuesday. 181,913 shares of the company's stock traded hands, compared to its average volume of 230,377. The business's 50 day moving average is $1.75 and its 200-day moving average is $1.78. Farmer Brothers has a 52-week low of $1.34 and a 52-week high of $3.29. The stock has a market capitalization of $39.94 million, a price-to-earnings ratio of -2.72 and a beta of 1.53. The company has a current ratio of 1.20, a quick ratio of 0.50 and a debt-to-equity ratio of 0.33.

Analyst Upgrades and Downgrades

Separately, Craig Hallum cut shares of Farmer Brothers from a "buy" rating to a "hold" rating and set a $2.50 price target on the stock. in a report on Friday. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $3.50.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in FARM. Goldman Sachs Group Inc. grew its position in shares of Farmer Brothers by 253.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 68,833 shares of the company's stock worth $153,000 after purchasing an additional 49,374 shares in the last quarter. XTX Topco Ltd grew its position in shares of Farmer Brothers by 210.2% during the 2nd quarter. XTX Topco Ltd now owns 42,297 shares of the company's stock worth $58,000 after purchasing an additional 28,661 shares in the last quarter. Jane Street Group LLC grew its position in shares of Farmer Brothers by 152.2% during the 1st quarter. Jane Street Group LLC now owns 41,129 shares of the company's stock worth $91,000 after purchasing an additional 24,820 shares in the last quarter. Finally, Gabelli Funds LLC grew its position in shares of Farmer Brothers by 2.3% during the 2nd quarter. Gabelli Funds LLC now owns 272,500 shares of the company's stock worth $373,000 after purchasing an additional 6,000 shares in the last quarter. Institutional investors and hedge funds own 64.48% of the company's stock.

Farmer Brothers Company Profile

Farmer Bros. Co engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and other allied products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, and syrups and sauces, as well as coffee filters, cups, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee.