Fresh Del Monte Produce
The 10-second takeaway
For the quarter ended March 29 (Q1), Fresh Del Monte Produce beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Fresh Del Monte Produce reported revenue of $918.8 million. The two analysts polled by S&P Capital IQ expected to see a top line of $877.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.71. The three earnings estimates compiled by S&P Capital IQ anticipated $0.95 per share. GAAP EPS of $0.71 for Q1 were 34% lower than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.7%, 180 basis points worse than the prior-year quarter. Operating margin was 5.8%, 170 basis points worse than the prior-year quarter. Net margin was 4.5%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $905.5 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $3.36 billion. The average EPS estimate is $1.99.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 183 members out of 227 rating the stock outperform, and 44 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Fresh Del Monte Produce a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fresh Del Monte Produce is outperform, with an average price target of $29.00.
Looking for alternatives to Fresh Del Monte Produce? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Fresh Del Monte Produce to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.