Arcadia Biosciences Reports Larger-Than-Expected Loss Amid Revenue Gains

Quarterly Loss Surprises Investors

Arcadia Biosciences (RKDA) reported a quarterly loss of $0.87 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.77. This loss marks an improvement from the $1.83 loss per share reported a year ago, adjusted for non-recurring items.

This latest earnings report represents a surprise of -12.99%. In the previous quarter, analysts had predicted earnings of $1.27 per share, but the company only achieved $0.78, leading to a surprise of -38.58%.

Revenue Figures Show Some Improvement

Over the past four quarters, Arcadia surpassed consensus EPS estimates twice. For the quarter ending September 2024, the company reported revenues of $1.54 million, exceeding the Zacks Consensus Estimate by 9.94%. However, this figure is slightly lower than the $1.6 million reported in the same quarter last year. Notably, Arcadia has beaten consensus revenue estimates three times in the last four quarters.

The future price movement of Arcadia’s stock is likely to hinge on insights from management during the upcoming earnings call regarding the company’s future earnings outlook.

This year, Arcadia Biosciences shares have risen approximately 35.5%, outperforming the S&P 500’s 25.8% gain.

Future Outlook for Arcadia Biosciences

While Arcadia has shown strong performance this year, many investors are wondering what comes next for the stock.

Determining future trends relies heavily on the company’s earnings outlook. This includes current consensus estimates for upcoming quarters and how these estimates have evolved recently.

Research indicates a significant link between stock price movements and changes in earnings expectations. Investors can track these revisions themselves or utilize tools like the Zacks Rank, which effectively capitalizes on earnings estimate changes.

Before this latest earnings release, estimate revisions for Arcadia were mixed. Following the recent earnings report, current expectations yield a Zacks Rank of #3 (Hold), suggesting that the stock is expected to perform in line with the broader market. Additionally, the consensus EPS estimate for the next quarter remains at -$0.50 on revenues of $1.45 million, while projections for the current fiscal year stand at -$1.70 on revenues of $5.41 million.

It is essential for investors to consider the industry’s outlook, which can significantly influence stock performance. As per the Zacks Industry Rank, Agriculture – Products stands in the bottom 16% of over 250 Zacks industries. Research has shown that the top half of ranked industries tend to outperform the bottom half by more than 2 to 1.

Compass Minerals Set to Release Earnings

Meanwhile, Compass Minerals (CMP), part of the Zacks Basic Materials sector, is yet to report its results for the September 2024 quarter.

The minerals producer is anticipated to report a quarterly loss of $0.47 per share, reflecting a dramatic year-over-year change of -683.3%. The consensus EPS estimate has not changed over the past 30 days.

Compass Minerals is also expected to generate revenues of $209.38 million, which would represent a decline of 10.4% from the same quarter last year.

Growth Potential Unveiled by Zacks Experts

From a pool of thousands, five Zacks experts have selected their top stock picks expected to surge by over 100% in the coming months. Among these, Director of Research Sheraz Mian has highlighted one stock that promises significant upside potential.

This notable company focuses on the millennial and Gen Z markets, achieving nearly $1 billion in revenue last quarter. Recent market corrections present an optimal time for investors to consider this opportunity. Although not every top pick performs as expected, this one has the potential to exceed the success of past Zacks featured stocks, like Nano-X Imaging, which surged +129.6% in just over nine months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report.

Arcadia Biosciences, Inc. (RKDA): Free Stock Analysis Report

Compass Minerals International, Inc. (CMP): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.