Limoneira (NASDAQ: LMNR) reported Q3 EPS of $0.71, $0.13 better than the analyst estimate of $0.58. Revenue for the quarter came in at $39.9 million versus the consensus estimate of $37.69 million.

Updating Fiscal Year 2016 Outlook

For the fiscal year ending October 31, 2016, the Company continues to expect to sell between 2.7 million and 3.0 million cartons of fresh lemons at an average price of approximately $24.00 per carton. The Company’s avocado harvest concluded in the third quarter of fiscal year 2016, with the Company selling 11.4 million pounds at $0.95 per pound in fiscal year 2016.

The Company is reiterating its guidance range for operating income, and updating its guidance range for EBITDA and earnings per diluted share for fiscal year 2016. The Company expects operating income for fiscal year 2016 to be approximately $8.6 million to $9.1 million. The Company now expects fiscal year 2016 EBITDA, which includes approximately $3.4 million gain on the sale of stock in Calavo Growers, Inc., in the range of $18.9 million to $19.4 million and fiscal year 2016 earnings per diluted share in the range of $0.45 to $0.50. Excluding $1.2 million of transaction costs incurred in connection with the Limoneira/Lewis joint venture and excluding approximately $3.4 million gain on sale of stock in Calavo Growers, Inc., fiscal year 2016 EBITDA and earnings per diluted share are expected to be in the range of $16.7 million to $17.2 million and $0.33 to $0.38, respectively. As more fully described at the end of this release under “Non-GAAP Financial Measures,” the Company is unable to reconcile without unreasonable effort the above forward-looking non-GAAP measures related to EBITDA, and the variability of the changes excluded from these non-GAAP measures may have a significant and potentially unpredictable impact on its future GAAP financial results.

Fiscal year 2016 estimated operating results reflect an anticipated increase in operating income primarily related to strong avocado sales, potential cost savings from the Company’s new lemon packing facilities, increased revenues from additional farm worker housing units, the elimination of lease expense resulting from the acquisition of the previously leased Sheldon Ranches and the $3.4 million gain on sale of Calavo Growers, Inc. stock. These operating improvements are offset by transaction costs of $1.2 million incurred on the close of the Limoneira/Lewis joint venture and an expected increase in depreciation expense that results from the new packing facilities, the acquired Sheldon Ranch property and the additional farm working housing units. In addition, interest expense is expected to increase in fiscal year 2016 related to the new packing house and the additional farm worker housing units being placed into service because related interest costs were capitalized during the construction period

For earnings history and earnings-related data on Limoneira (LMNR) click here.