SENEA Stock Down Following Y/Y Q2 Earnings Decline, Gross Margin Down

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Seneca Foods Corporation SENEA reported earnings per share (EPS) of $1.90 in the second quarter of fiscal 2025, which decreased 42.2% from the year-ago EPS of $3.29.

SENEA’s Revenues in Detail

Seneca Foods registered revenues of $425.5 million in the fiscal second quarter, up 4.4% year over year.

The uptick resulted from higher sales volumes, coupled with product mix and increased selling prices.

Shares of this company lost nearly 2.1% in today’s pre-market trading.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Seneca Foods’ Segment Details

Seneca Foods derives revenues from five sources — Canned vegetables, Frozen vegetables, Fruit products, Snack products and Other.

For the quarter under review, Canned vegetables revenues were $351.3 million, up 6.9% from the year-ago quarter. Frozen vegetables revenues were $39.1 million, down 9.2% year over year.

Per management, the categories were impacted by overall higher demand, complemented by increased pricing and a favorable product mix.

Fruit products revenues during the fiscal second quarter were $22.3 million, down 2.1% year over year. Snack products revenues were $4 million, down 5.1% year over year.

Revenues in the Other category totaled $8.8 million, down 0.3% year over year.

Seneca Foods Corp. Price, Consensus and EPS Surprise

Seneca Foods Corp. Price, Consensus and EPS Surprise
Seneca Foods Corp. Price, Consensus and EPS Surprise

Seneca Foods Corp. price-consensus-eps-surprise-chart | Seneca Foods Corp. Quote

SENEA’s Gross Margin

In the quarter under review, Seneca Foods’ gross margin was 10.1% compared with 14.3% in the year-ago period. The decrease in gross margin for the fiscal second quarter was mainly due to continued elevated costs.

Seneca Foods’ Operating Expenses Analysis

Selling, general, and administrative expenses declined 14.1% year over year to $18.1 million.

SENEA’s Profitability

Operating income totaled $24.7 million, which decreased 35.8% from the prior-year quarter.

In the fiscal second quarter, Seneca Foods’ net income was $13.3 million, down 46.3% from the year-ago quarter.

FIFO EBITDA during the reported quarter was $53.5 million, down 13.5% from the year-ago quarter.

Seneca Foods’ Liquidity & Debt Management

Seneca Foods exited second-quarter fiscal 2025 with cash and cash equivalents of $9.5 million compared with $5.5 million at the fiscal first-quarter end. Total debt at the end of the fiscal second quarter was $514.5 million compared with $580.5 million at the fiscal first-quarter end.

Cumulative net cash provided by operating activities at the end of the fiscal second quarter was $125.9 million against the cumulative net cash used in operating activities of $26.3 million a year ago.