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Arcadia Biosciences (RKDA) Q4 Earnings Beat Mark, Sales Up Y/Y
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Arcadia Biosciences (RKDA - Free Report) reported an adjusted loss of $2.48 per share in the fourth quarter of 2023, which beat the Zacks Consensus Estimate of a loss of $2.68 per share. RKDA reported a loss per share of $6.31 in the fourth quarter of 2022. The improvement in the bottom line was mainly attributed to lower operating expenses.
Net loss attributable to common stockholders in the fourth quarter of 2023 was $2.10 per share compared with $6.31 in the fourth quarter of 2022.
Net sales were $1.17 million in the quarter under review, which marked a 57% increase from the year-ago quarter, driven by higher GoodWheat and GLA revenues. The top line missed the Zacks Consensus Estimate of $2 million.
Operating expenses declined 16% year over year to $4.5 million in the quarter, attributed to a decline in the cost of revenues and selling, general and administrative (SG&A) expenses. The cost of revenues declined year over year in the fourth quarter of 2023 as the comparable year-ago quarter included higher inventory write-downs. SG&A expenses declined owing to lower employee costs in the quarter under review. The expenses have declined for two straight years and are at their lowest level since 2019.
Arcadia Biosciences, Inc. Price, Consensus and EPS Surprise
As of the end of 2023, RKDA’s cash and cash equivalents were $6.5 billion compared with $20.6 million at 2022-end. The company used $15 million of cash in operating activities in 2023 compared with a cash outflow of $14 million in the prior year.
2023 Performance
In 2023, Arcadia Biosciences reported a loss of $11.02 per share, which was wider than the Zacks Consensus Estimate of a loss of $8.23 per share. Total revenues fell 28% year over year to $5.3 million, which missed the Zacks Consensus Estimate of $6 million.
Key Highlights of 2023
Backed by its success with GoodWheat high-fiber pasta, Arcadia launched two new product categories in 2023, pancake/waffle mixes in the third quarter and mac & cheese in the fourth quarter.
Aligned with its strategy to focus on high-opportunity, scalable businesses, Arcadia discontinued its two remaining Body Care brands, ProVault and SoulSpring. This will help the company concentrate on the more promising GoodWheat and Zola brands. Also, streamlined operations and organizational changes led to savings in operating expenses of $2 million in 2023. Anticipated annual savings are expected to be between $3 million and $4 million moving forward.
In mid-2023, Arcadia launched a strategic review to maximize the GoodWheat value proposition and enhance shareholder value. This entails considering various options such as acquisition, merger or joint venture.
Price Performance
Shares of Arcadia Biosciences have lost 34% over the past year against the industry's 5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Arcadia Biosciences currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 38% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 7% in a year.
The Zacks Consensus Estimate for Hawkins’ fiscal 2024 earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The consensus estimate for HWKN’s current-year earnings has been revised 4.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 30.6%. The company’s shares have rallied 28% in the past year.
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Arcadia Biosciences (RKDA) Q4 Earnings Beat Mark, Sales Up Y/Y
Arcadia Biosciences (RKDA - Free Report) reported an adjusted loss of $2.48 per share in the fourth quarter of 2023, which beat the Zacks Consensus Estimate of a loss of $2.68 per share. RKDA reported a loss per share of $6.31 in the fourth quarter of 2022. The improvement in the bottom line was mainly attributed to lower operating expenses.
Net loss attributable to common stockholders in the fourth quarter of 2023 was $2.10 per share compared with $6.31 in the fourth quarter of 2022.
Net sales were $1.17 million in the quarter under review, which marked a 57% increase from the year-ago quarter, driven by higher GoodWheat and GLA revenues. The top line missed the Zacks Consensus Estimate of $2 million.
Operating expenses declined 16% year over year to $4.5 million in the quarter, attributed to a decline in the cost of revenues and selling, general and administrative (SG&A) expenses. The cost of revenues declined year over year in the fourth quarter of 2023 as the comparable year-ago quarter included higher inventory write-downs. SG&A expenses declined owing to lower employee costs in the quarter under review. The expenses have declined for two straight years and are at their lowest level since 2019.
Arcadia Biosciences, Inc. Price, Consensus and EPS Surprise
Arcadia Biosciences, Inc. price-consensus-eps-surprise-chart | Arcadia Biosciences, Inc. Quote
Cash Position
As of the end of 2023, RKDA’s cash and cash equivalents were $6.5 billion compared with $20.6 million at 2022-end. The company used $15 million of cash in operating activities in 2023 compared with a cash outflow of $14 million in the prior year.
2023 Performance
In 2023, Arcadia Biosciences reported a loss of $11.02 per share, which was wider than the Zacks Consensus Estimate of a loss of $8.23 per share. Total revenues fell 28% year over year to $5.3 million, which missed the Zacks Consensus Estimate of $6 million.
Key Highlights of 2023
Backed by its success with GoodWheat high-fiber pasta, Arcadia launched two new product categories in 2023, pancake/waffle mixes in the third quarter and mac & cheese in the fourth quarter.
Aligned with its strategy to focus on high-opportunity, scalable businesses, Arcadia discontinued its two remaining Body Care brands, ProVault and SoulSpring. This will help the company concentrate on the more promising GoodWheat and Zola brands. Also, streamlined operations and organizational changes led to savings in operating expenses of $2 million in 2023. Anticipated annual savings are expected to be between $3 million and $4 million moving forward.
In mid-2023, Arcadia launched a strategic review to maximize the GoodWheat value proposition and enhance shareholder value. This entails considering various options such as acquisition, merger or joint venture.
Price Performance
Shares of Arcadia Biosciences have lost 34% over the past year against the industry's 5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Arcadia Biosciences currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ecolab Inc. (ECL - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) . ECL and CRS currently sport a Zacks Rank #1 (Strong Buy), and HWKN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 38% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 7% in a year.
The Zacks Consensus Estimate for Hawkins’ fiscal 2024 earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The consensus estimate for HWKN’s current-year earnings has been revised 4.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 30.6%. The company’s shares have rallied 28% in the past year.