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Bear Of The Day: Farmer Brothers (FARM)

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Farmer Brothers Company (FARM - Free Report) is a Zacks Rank #5 (Strong Sell) and it has F's for the Value and Growth Style Scores.  That alone should give you pause, but now, this stock is the bear of the day.  Let's take a look at why this stock fell to the lowest Zacks Rank.

Description

Farmer Bros. Co. is in the business of roasting, packaging and distributing coffee and allied products to restaurants, hotels, hospitals, convenience stores and fast food outlets. The company's primary raw material is green coffee. Green coffee is purchased through domestic commodity brokers. Coffee is an agricultural commodity, and is subject to fluctuations of both price and supply.

Recent Earnings

FARM recently reported earnings and missed the Zacks Consensus Estimate.  I see a loss of 27 cents for the quarter when a gain of 9 cents was expected.  That is a hugue miss and good for a negative 400% earnings surprise.

Estimate Revisions

That recent loss was kist the tip of the iceberg, as analysts not only cut the full year number, but also reduced expectations for next quarter to be another moneyl losing quarter.

Follow this link to see how the estimates have changed for FARM:

https://www.zacks.com/stock/quote/FARM/detailed-estimates

Chart

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