Farmer Bros Q2 Earnings Beat Estimates, Gross Margin Expands

Farmer Bros. Co. FARM reported second-quarter fiscal 2025 results, with the top line increasing year over year but missing the Zacks Consensus Estimate. Meanwhile, the bottom line declined year over year but beat the consensus mark. The company achieved improvements in sales while maintaining gross margins above 43% for the second consecutive quarter. FARM’s primary focus remains on driving top-line growth, expanding coffee volume and growing its customer base while enhancing operational efficiency. With significant progress in DSD operations and business optimization in the past 18 months, Farmer Bros believes it is well-positioned for long-term growth and profitability as market conditions stabilize.FARM’s Quarterly Performance: Key InsightsFarmer Bros posted quarterly earnings of 1 cent per share, surpassing the Zacks Consensus Estimate of a loss of 12 cents. However, the bottom line declined from 13 cents reported in the prior-year period.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Farmer Brothers Company Price, Consensus and EPS Surprise Farmer Brothers Company price-consensus-eps-surprise-chart | Farmer Brothers Company QuoteThe company generated net sales of $90 million, which was down from the Zacks Consensus Estimate of $91 million. However, the metric increased 0.6% from the year-ago period. The gross profit was $38.8 million compared with $36.1 million reported in the year-ago period. The gross margin increased 270 basis points to 43.1%, driven primarily by improved pricing.Operating expenses of $37.8 million increased from $31.7 million in the prior-year quarter, due to a $7.7 million decline in net gains from asset disposals, as no branch sales occurred in the second quarter of fiscal 2025.The adjusted EBITDA was $5.9 million, up from $2.3 million reported in the year-ago period.FARM’s Financial Health SnapshotFarmer Bros ended the quarter with unrestricted cash and cash equivalents of $5.5 million, restricted cash of $0.2 million, outstanding borrowings of $23.3 million and borrowing availability under its revolving credit facility of $23.7 million. For the six months ended Dec. 31, 2024, Farmer Bros’ cash provided by operating activities was $5 million and capital expenditures were $5.4 million.Shares of this Zacks Rank #3 (Hold) company have risen 5.3% in the past three months compared with the industry's growth of 7.5%.Image Source: Zacks Investment ResearchStocks to ConsiderUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for United Natural Foods’ current financial-year sales and earnings indicates growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average.TreeHouse Foods THS manufactures and distributes private brands of snacks and beverages in the United States and internationally. It presently holds a Zacks Rank #2 (Buy). THS delivered a trailing four-quarter earnings surprise of 20.4%, on average.The Zacks Consensus Estimate for Treehouse Foods’ current-quarter earnings indicates growth of 26% from the year-ago reported figures.US Foods Holding USFD engages in marketing, sale and distribution of fresh, frozen and dry food and non-food products to food-service customers in the United States. It currently carries a Zacks Rank #2. USFD delivered an earnings surprise of 3.7% in the last reported quarter.The consensus estimate for US Foods’ current full-year sales and earnings indicates growth of 6.5% and 18.6%, respectively, from the prior-year reported levels.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report TreeHouse Foods, Inc. (THS): Free Stock Analysis Report Farmer Brothers Company (FARM): Free Stock Analysis Report US Foods Holding Corp. (USFD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks