The 10-second takeaway
For the quarter ended March 24 (Q1), Dole Food missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, and net margins improved.
Dole Food reported revenue of $1.63 billion. The six analysts polled by S&P Capital IQ predicted net sales of $1.68 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $1.69 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The six earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.20 for Q1 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.5%, 180 basis points worse than the prior-year quarter. Operating margin was 2.7%, 220 basis points worse than the prior-year quarter. Net margin was 1%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $7.25 billion. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 80 members rating the stock outperform, and six members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Dole Food a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dole Food is outperform, with an average price target of $12.21.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.