BranchOut Food (NASDAQ:BOF) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

BranchOut Food (NASDAQ:BOF) posted its earnings results on Thursday. The company reported ($0.18) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.20) by $0.02, FiscalAI reports. The company had revenue of $4.46 million for the quarter, compared to analysts’ expectations of $4.00 million. BranchOut Food had a negative return on equity of 138.86% and a negative net margin of 53.27%.

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 Stock Up 1.4%

Shares of BOF traded up $0.06 during mid-day trading on Thursday, hitting $4.45. 103,998 shares of the company’s stock were exchanged, compared to its average volume of 76,858. The company has a quick ratio of 0.42, a current ratio of 0.87 and a debt-to-equity ratio of 0.27. The stock has a market cap of $68.17 million, a price-to-earnings ratio of -7.54 and a beta of 0.65. BranchOut Food has a twelve month low of $1.93 and a twelve month high of $5.25. The firm has a fifty day moving average of $4.14 and a two-hundred day moving average of $3.80.

Hedge Funds Weigh In On BranchOut Food

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Virtu Financial LLC acquired a new stake in shares of BranchOut Food in the fourth quarter valued at about $35,000. Quadrature Capital Ltd bought a new stake in shares of BranchOut Food in the fourth quarter valued at about $59,000. State Street Corp grew its position in BranchOut Food by 82.7% during the fourth quarter. State Street Corp now owns 24,300 shares of the company’s stock worth $77,000 after buying an additional 11,000 shares in the last quarter. Jane Street Group LLC bought a new position in BranchOut Food during the fourth quarter valued at about $82,000. Finally, Renaissance Technologies LLC acquired a new stake in shares of BranchOut Food during the 4th quarter worth approximately $148,000. Institutional investors and hedge funds own 2.59% of the company’s stock.

Wall Street Analyst Weigh In

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

About BranchOut Food

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.