Limoneira Lifts Its Avocado Outlook for Fiscal 2024
Limoneira Company has raised its expectations for avocado production this year, now calling for 14.5 to 15.5 million pounds for the fiscal year. That’s more than 50% above its earlier projection of 9 to 10 million pounds and signals a company leaning into favorable conditions. CEO Harold Edwards shared the updated outlook on the third-quarter earnings call with analysts, framing it as both a response to the market and a reflection of execution on the ground.
Harvest Pacing and a Shot at Record Sales
Edwards said the company expects to finish avocado harvesting in the fourth quarter, with 4 to 5 million pounds still to pick. Timing matters here. Limoneira plans to use its capacity to hold fruit until pricing improves, aiming to meet what it believes could be record volumes of avocado sales. The plan is straightforward: finish strong, release fruit when the market is ready, and capture the value.
Third-Quarter Results: Revenue Steps Up
In the third quarter of fiscal year 2024, Limoneira posted $13.9 million in avocado revenue, up sharply from $3.5 million in the same quarter a year earlier. Total net revenues also grew, rising to $63.3 million from $52.5 million. The lift points to momentum in the avocado business alongside broader top-line growth, with both price and volume contributing.
Volumes and Pricing, Year Over Year
During the quarter, Limoneira sold about 8.86 million pounds of avocados at an average price of $1.57 per pound. A year earlier, sales were roughly 2.82 million pounds at an average of $0.99 per pound. The contrast is stark. Higher volumes at higher prices suggest stronger pull-through and a market that continues to make room for avocados in everyday baskets.
Building for Tomorrow
Looking ahead, Limoneira plans to expand avocado production by another 1,000 acres over the next three years. The move is rooted in demand the company believes has staying power. Even so, CFO Mark Palamountain noted that production is likely to be lower next year, given the alternation growth cycle typical of avocado trees. In other words, this season’s strength doesn’t automatically repeat next season, and the company is planning for that.
Pricing Watch
Despite the expectation of lower volumes in the coming year, Limoneira also sees the possibility that avocado prices might decrease, reflecting international market pressures. Palamountain flagged the risk that global dynamics could weigh on pricing, and the company is incorporating that view into its strategy. Fewer pounds don’t always mean firmer prices when the broader market shifts.
Market Snapshot
As of the latest update, Limoneira’s stock was down 3.2%, trading at $24.20. Day-to-day moves like this are not unusual in a market where weather, supply corridors, and currency swings can influence both pricing strategies and how the company is valued.
A Measured Takeaway
Consumer appetite for avocados remains strong, and Limoneira is leaning into that demand with a higher 2024 outlook and plans to add acreage. The company also isn’t ignoring the harder parts: a likely lower crop next year and potential price pressure from abroad. Put together, the approach feels pragmatic—harvest well, sell smart, and keep building for seasons still ahead.
Frequently Asked Questions
What is Limoneira’s projected avocado volume for fiscal year 2024?
Limoneira expects to produce between 14.5 million and 15.5 million pounds in fiscal year 2024. That’s a lift from its earlier outlook of 9 to 10 million pounds and reflects confidence in current growing and market conditions.
How did Limoneira perform in the third quarter of fiscal year 2024?
The company reported $13.9 million in avocado revenue in the third quarter of fiscal 2024, up from $3.5 million in the prior-year quarter. Total net revenues rose to $63.3 million from $52.5 million, showing broader growth beyond avocados as well.
What are Limoneira’s future production plans?
Limoneira plans to expand its avocado footprint by 1,000 acres over the next three years. At the same time, it expects next year’s production to be lower because of the alternation growth cycle typical of avocado trees, as noted by CFO Mark Palamountain.
Are avocado prices expected to change?
Yes. The company indicated that avocado prices may decline in 2025, driven by international market pressures. That outlook is part of how Limoneira is shaping its strategy for the coming year.
What are the current stock trends for Limoneira?
As of the latest update mentioned, shares were down 3.2%, trading around $24.20. Stock moves like this can reflect shifting expectations about supply, pricing, and broader market sentiment.
