Unpacking Q3 Earnings: Fresh Del Monte Produce (NYSE:FDP) In The Context Of Other Perishable Food Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Fresh Del Monte Produce (NYSE:FDP) and the rest of the perishable food stocks fared in Q3.
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 10 perishable food stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 8.2%.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Fresh Del Monte Produce (NYSE:FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.02 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
"We are pleased to report strong performance in the third quarter. Our strategic focus on high-margin, value-added products continues to deliver positive results, demonstrating the strength of our product innovations and our commitment to driving long-term profitability and value for our shareholders,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh.
Fresh Del Monte Produce Total Revenue
Interestingly, the stock is up 13.3% since reporting and currently trades at $32.92.
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $354.4 million, up 37.4% year on year, outperforming analysts’ expectations by 63.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Mission Produce Total Revenue
Mission Produce scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.5% since reporting. It currently trades at $14.11.
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $785.9 million, up 71.1% year on year, exceeding analysts’ expectations by 11.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 39.2% since the results and currently trades at $107.
With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Flowers Foods reported revenues of $1.19 billion, flat year on year. This print missed analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Flowers Foods had the slowest revenue growth among its peers. The stock is down 6.6% since reporting and currently trades at $20.55.
Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.57 billion, up 1.6% year on year. This number surpassed analysts’ expectations by 1%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ gross margin and EBITDA estimates.
The stock is down 1.1% since reporting and currently trades at $58.20.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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