Written by The Business Journal Staff
Fresno-based S&W Seed Co. on Thursday reported a 20 percent increase in earnings during the fourth quarter, causing its stock to jump more than 6 percent in after hours trading.
In issuing its latest report, which also included results from its full 2016 fiscal year ending June 30, S&W said the company expects to record annual revenue of approximately $100 million, which would reflect an increase of approximately 4 percent over fiscal 2016.
“During fiscal 2016, S&W strengthened its leadership position in the alfalfa seed segment, expanded its product offerings into two new complimentary crops, and positioned itself for growth through the expansion of contracted production acreage and newly signed licensing agreements,” said Mark Grewal, president and CEO of S&W Seed Company. “By leveraging our expanded infrastructure and a strong market for our products, we believe that we are well-positioned as we move into fiscal 2017.”
Matthew Szot, chief financial officer at S&W Seed, said the company’s gross profit margins “came in stronger than expected during the fourth quarter as we accelerated our optimization program and maintained a strict pricing strategy within key alfalfa seed markets.”
“As we look to fiscal 2017, we expect to see an improvement in gross profit margins driven by stable pricing, enhanced optimization and decreased production costs,” Szot added. “Our balance sheet continues to be strengthened as we pay down our convertible debt. With a balance of only $5 million remaining on the convertible debt through today, we expect to retire the balance over the next six months.”
S&W Seed trades on the NASDAQ under the ticker SANW. The company’s shares closed Thursday at $4.72. S&W’s stock has moved in a range between $3.90 and $5.10 during the past year and traded as high as $5.25 after the latest earnings report was released.