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Arcadia Biosciences' Q3 Earnings Miss Estimates, Sales Increase Y/Y

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Arcadia Biosciences (RKDA - Free Report) reported a loss (from continuing operations) of 87 cents per share in the third quarter of 2024, which missed the Zacks Consensus Estimate of a loss of 77 cents per share. RKDA had reported an adjusted loss of $1.83 per share in the third quarter of 2023.

In May 2024, Arcadia Biosciences sold its GoodWheat brand to Above Food Corp. During the month, RKDA also sold its Resistant Starch (”RS”) Durum trait to Corteva Agriscience, a subsidiary of Corteva (CTVA - Free Report) . The company received $4.0 million in cash from Corteva. Including discontinuing operations, the company reported a loss of $1.18 per share compared with a loss of $1.87 per share in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Zola Brand Drives Arcadia Biosciences’ Sales

Net sales were $1.5 million, which marked an 18% improvement from the year-ago quarter, driven by higher Zola sales. The top line beat the Zacks Consensus Estimate of $1 million.

The company announced that Zola coconut water sales were up 55% year over year, with the brand continuing to gain market share. New retail distribution increased 68% from the last year.

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

RKDA Reports Operating Loss on Higher Costs

The cost of revenues rose 26% year over year to $1.03 million. Research and development expenses were $0.02 million, flat compared with the year-ago quarter. Selling, general and administrative (SG&A) expenses increased 20% from the prior year to $2.24 million due to employee severance expenses related to the change in management.

Operating expenses increased 22% year over year to $3.3 million, mainly reflecting higher SG&A expenses.

Arcadia Biosciences reported an operating loss of $1.76 million in the third quarter compared with $1.4 million in the third quarter of 2023.

Arcadia Biosciences’ Cash Position

At the end of the third quarter, RKDA’s cash and cash equivalents were $3.9 million compared with $6.5 million at 2023-end. It used $7.4 million of cash in operating activities in the first nine-month period of 2024 compared with $11.1 million in the prior-year period.

RKDA Stock’s Price Performance

RKDA’s shares have lost 7.3% over the past year against the industry's 0.5% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Arcadia Biosciences’ 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 RKDA’s Peers

GrowGeneration Corp. (GRWG - Free Report) reported a loss per share of 19 cents in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 11 cents per share. The company reported a loss of 12 cents per share in the third quarter of 2023.

GrowGeneration generated revenues of $50 million , which declined 10.1% year over year due to 25 fewer retail locations. The top line surpassed the consensus estimate of $48.9 million. Comparable store sales improved 12.5% from the prior year.

Hydrofarm Holdings Group, Inc. (HYFM - Free Report) reported an adjusted loss of 26 cents per share in the third quarter of 2024, which missed the Zacks Consensus Estimate of a loss of 23 cents per share. This compares with a loss of $0.25 per share a year ago.

HYFM’s revenues were $44.01 million, which fell short of the consensus estimate of $47 million. Revenues declined 19% year over year.


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