Coffee Holding Co., Inc. Reports Second Quarter Results and New Dividend.
Financial Performance: Coffee Holding Co., Inc. reported a profit of $0.11 per share for the fiscal quarter ending April 30, 2025, with revenues increasing by 22% compared to the same period in 2024, despite challenges from fluctuating coffee prices and a loss on a major wholesale customer.
Future Outlook: The company anticipates improved performance moving forward due to recent price increases on products, strategic inventory management during market fluctuations, and positive results from its acquisition of Empire Coffee Company, along with the resumption of dividends for shareholders.
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- Vietnam Coffee Exports: Vietnam's coffee exports have increased by 38% year-on-year, reaching a total of 198,000 tons.
- Market Impact: This significant rise in exports reflects Vietnam's strong position in the global coffee market.
- Buying Opportunity: Stocks in the consumer staples sector with an RSI below 30 are considered oversold, presenting opportunities to invest in undervalued companies, especially during market fluctuations.
- Instacart Performance: Instacart (NASDAQ:CART) shares have fallen approximately 18% over the past month, with an RSI of 29.3 indicating potential for a short-term rebound, as analysts maintain a Buy rating.
- Price Target Adjustment: Stifel analyst Mark Kelley lowered the price target for Instacart from $49 to $46, reflecting a cautious market outlook on the company's future performance while providing investors with a chance to buy at a lower price.
- Market Dynamics Analysis: Other oversold stocks in the consumer sector, such as Coffee Holding Co. and 22nd Century Group, also show investment potential, allowing investors to assess short-term trading opportunities through RSI indicators.
- Financial Highlights: Coffee Holding reported a GAAP EPS of $0.25 for FY 2023, indicating stable profitability amidst market fluctuations.
- Revenue Performance: The company achieved revenue of $96.3 million, showcasing its strong market position in the coffee industry and providing funding for future investments.
- Shareholder Communication: During the shareholder and analyst call, management emphasized future growth strategies aimed at enhancing overall performance through supply chain optimization and market share expansion.
- Market Evaluation: According to Seeking Alpha's Quant Rating, Coffee Holding's financial performance is viewed as having investment appeal, reflecting market confidence in its future development.
- Core CPI Data: The US December core Consumer Price Index rose 2.6% year-over-year, slightly below economists' expectations, indicating persistent inflationary pressures that could influence future monetary policy decisions.
- Food Price Increases: Food prices rose 3.1% year-over-year in December, with dining out prices up 4.1% and at-home food prices up 2.4%, directly impacting consumer spending and corporate profits.
- Beef Price Surge: Beef prices soared, with uncooked ground beef up 15.5%, roasts up 17.5%, and steaks up 17.8%, reflecting a combination of supply shortages and strong demand, with this trend expected to last for several years.
- Coffee Price Rise: Coffee prices increased by 19.8% year-over-year in December, and despite tariff relief in November, it remains unclear when retail prices will decline, potentially affecting the profitability of several coffee chain companies.
- Strong Stock Performance: Dollar General's stock has surged approximately 26% over the past month, reaching a 52-week high of $138.46, indicating robust market demand and investor confidence.
- Analyst Rating Upgrade: Evercore ISI Group analyst Michael Montani maintained an In-Line rating for Dollar General while raising the price target from $130 to $135, reflecting an optimistic outlook on the company's future performance.
- Overbought RSI Indicator: With a Relative Strength Index (RSI) of 75.3, Dollar General is considered overbought, suggesting that investors should carefully assess potential short-term price volatility risks.
- Market Dynamics Analysis: Dollar General's strong performance aligns with trends in the consumer staples sector, potentially attracting more investor attention and further driving stock price increases.

Closure of Manufacturing Facility: Coffee Holding Co., Inc. will close its Comfort Foods manufacturing facility in North Andover, Massachusetts, at the end of the month due to declining sales and profitability, particularly for its Harmony Bay product line.
Strategic Shift in Production: The company plans to consolidate production at its Second Empire facility in Port Chester, New York, which is expected to improve operational efficiencies and result in annual savings of approximately $700,000 by eliminating redundant manufacturing operations on the East Coast.









