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Arcadia Biosciences (RKDA) Q2 Earnings Miss, Increase Y/Y

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Arcadia Biosciences (RKDA - Free Report) reported adjusted earnings of 78 cents per share in the second quarter of 2024, which missed the Zacks Consensus Estimate of $1.27. RKDA reported an adjusted loss of $2.64 per share in the second quarter of 2023. 

During the quarter, Arcadia sold its GoodWheat brand to Above Food Corp. for net payments of $4 million over the next three years. The brand was launched in 2018 to help increase the amount of fiber in food items using Arcadia’s patented non-GMO wheat grain, which is naturally higher in fiber and protein.

The company also sold its Resistant Starch (“RS”) Durum trait to Corteva Agriscience, a subsidiary of Corteva (CTVA - Free Report) , for $4 million in cash. Arcadia and Corteva had teamed up in 2017 to develop and commercialize RS Durum in North America.

Net sales were $1.3 million, which marked a slight uptick of 0.7% from the year-ago quarter, driven by higher Zola sales, offset by a decline in GLA sales. The top line beat the Zacks Consensus Estimate of $1 million.

The company announced that Zola coconut water sales were up 42% year over year, with the brand continuing to dominate the coconut water category. Also, new pineapple and lime flavors began shipping in the second quarter. Backed by customer preference for Zola, the company plans to continue investing in trial-driving activities and expand distribution of the brand through mass market retailers and grocery store chains.

Arcadia Biosciences, Inc. Price, Consensus and EPS Surprise

Arcadia Biosciences, Inc. Price, Consensus and EPS Surprise

Arcadia Biosciences, Inc. price-consensus-eps-surprise-chart | Arcadia Biosciences, Inc. Quote

The cost of revenues dipped 2.6% year over year to $0.63 million. Research and development expenses were $0.01 million compared with $0.03 million in the year-ago quarter. Selling, general and administrative (SG&A) expenses surged 29% from the prior year to $2.68 million due to higher consulting and legal expenses associated with the Corteva and Above Food transactions. 

Adjusted operating expenses increased 21% year over year to $3.33 million, mainly reflecting higher SG&A expenses. 

Arcadia Biosciences recognized a $4 million gain from the abovementioned asset sale to Corteva. Including this, operating expenses were $0.67 million in the second quarter.

Cash Position

At the end of the second quarter, RKDA’s cash and cash equivalents were $5.5 million compared with $6.5 million in 2023-end. It used $5.7 million of cash in operating activities in the first half of 2024 compared with a cash outflow of $8.3 million in the prior-year comparable period.

The company also announced that following the departure of Stan Jacot, Thomas J. Schaefer has been appointed president and CEO of Arcadia.

Price Performance

RKDA shares have lost 29% over the past year compared with the industry's 3.5% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Arcadia Biosciences currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Agricultural Products Stocks

Bunge Global SA (BG - Free Report) reported second-quarter adjusted earnings per share of $1.73, which missed the Zacks Consensus Estimate of $1.79. The bottom line marked a 53% plunge from earnings of $3.72 per share in the year-ago quarter.

BG reported net sales of $13.41 billion, down 12% from $15.05 billion in the year-ago quarter. The top line missed the consensus estimate of $13.69 billion.

West Fraser Timber Co. Ltd. (WFG - Free Report) posted adjusted earnings of $1.20 per share in the second quarter, which missed the Zacks Consensus Estimate of $1.29. The company posted a loss of 3 cents per share in the year-ago quarter.

WFG posted revenues of $1.705 billion, which beat the Zacks Consensus Estimate of $1.618 billion. Revenues were up 4.8% year over year.

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