Analysts were expecting FARM to put up 4th quarter revenues of $127.16 million, but the company surpassed those forecasts by putting up a top line of $129.104 million. That is quite impressive considering the fact that the price of coffee fell by an unprecedented amount in the last 12 months. and Most Of FARM's national contracts saw their pricing levels cut.
the futures are soaring because of Summers withdrawal from consideration to become the next Fed reserve chairman. This will be a very bad day for shorts, as they will feel a definite squeeze.
you mentioned that Goodwill is understated? that is actually a bad thing, because goodwill possess no value in a potential sale transaction, and a understatement would harm tangible book value. "Don't sell too soon?" just ask Bernard Baruck about that one.
The company will now report in two weeks, due to the pension cost restatements. That will give me and others more time to accumulate a bigger position to exploit the earnings report. The CFO said, that these costs are lower than originally calculated, so this revelation should benefit the bottom line.
BRID is getting very close to reaching the market cap threshold for obtaining membership in the Russell 2000 index again ( $100 million requirement). If that happens, funds will be forced to buy this very low float stock, causing it to skyrocket. A 40-50% rise in a few hours is quite possible.
The adjustment is so minimal, it appears to be a non event. At least the adjustment is in FARM's favor.
I just saw that too...trying to digest it. I think it could be construed as a positive, because it means the company's postretirement benefit costs were not as high as they originally calculated ( they were actually $4 million less) during the past three years. The CFO says its Cost structure will shrink as a result .... Mr. Nelson concluded, "We anticipate that this net reduction in our postretirement benefit obligations will translate into lower periodic service costs and lower net cash outlays in the future."
It is mighty quiet here. The calm before the storm perhaps? JVA just released its results this am and even though they put up horrible numbers, their stock is barely down. I wonder why? FARM should report its 4th quarter earnings no later than Friday or Monday. The good news is that expectations are quite low again, so it should be easy for them to surpass.
One thing for sure, after the drop in the share price, it is way less risky to be long the shares than short the shares, going into the fourth quarter earnings event. You are right about the float....its very, very tiny size is a big risk to short sellers, because if good news is released, there will be no way for the shorts to find any shares to cover with.
Bad quarter that 's for sure, that's probably why they didn't repurchase any shares during the second quarter. The PBY higher-ups knew they would have the opportunity to buy back the shares after the stinker earnings results were released , at a much lower price, so they deserve kudos for at least postponing the share purchases.
There is good chance that FARM will finally provide some color on its McDonalds supply agreement when its 10K is released near the end of this week. it might also provide an update on its Walgreens and Aramark business. One thing for sure, FARM is making nice progress in its efforts to expand its national contracts.