Limoneira Company tumbled more than 40% from its stock-price high after reporting awful fiscal second quarter results. Instead, the agricultural biotech company logged an adjusted loss of 17 cents per share. That’s a remarkable drop in contrast to the $5.2 billion profit, or 44 cents per share, they made during the second quarter of last year. Their total revenue for the quarter came in at $35.1 million, a significant drop from $44.6 million this time last year.
Indeed, the market had an immediate and aggressive response to Limoneira’s fiscal results, leading to an 8.5% decline in its share price. This recent downturn is indicative of investor worries about the company’s ability to make money and avoid bankruptcy. Confirming a bigger trend in the entire hospitality market, shares of Cracker Barrel Old Country Store also dropped 8.1%. For its part, AstraZeneca lost around 1%, and Moderna was down 0.9%.
Limoneira isn’t the only company preparing to release its quarterly results. J. M. Smucker Co. and GameStop will be announcing theirs, with potentially major market-moving implications over the next few days.
In a more positive overall sign for the stock market, futures for the Dow Jones Industrial Average rose 132 points. That’s a stunning increase of 0.32%! The S&P 500 added almost 0.1% in the regular trading session. The tech-heavy Nasdaq Composite index increased by nearly 0.3%. The Dow finished just under its own flatline, reflecting indecisiveness on the part of investors.
Analysts are finding much to study in the unraveling narrative of the U.S.-China trade war. These discussions would serve to restore confidence among investors, too.
“I think most people are assuming that some conversation is better than nothing, that we’re making progress,” – Adam Parker, founder of Trivariate Research.