How Is Alico Inc (ALCO) Doing As It Exits Citrus Business?

Alico Inc (NASDAQ:ALCO) is one of the best small cap agriculture stocks to buy now. The stock has risen almost 30% over the past six months, and analysts see more upside potential.

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Alico Inc (NASDAQ:ALCO) is winding down its citrus production business, which has been its main operation. In the March quarter results reported on May 11, revenue from the citrus business declined 78% to $3.8 million. The business made a loss of $5.1 million, though that was sharply down from a loss of $150.3 million in the same period last year.

While the citrus business continues to shrink, the land management business continues to expand. Alico said revenue from its land management and other operations grew 113.1% YoY to $1.5 million. This business segment includes leasing land for grazing, hunting, farming, and mining activities. The company has leased land to third-party citrus growers, sugarcane producers, and cattle operators.

Alico’s management says that the land management business has diversified the company’s revenue streams and reduced operational complexity. The company’s overall revenue of $5.3 million exceeded analysts’ expectations of $900,000. EPS of $1.49 surpassed the anticipated $1.21.

Alico Inc (NASDAQ:ALCO) is engaged in agribusiness and land management operations. Alico has been a leading citrus producer, but it is pivoting to other businesses that it considers more promising, including leasing its vast land to other agricultural operators.

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