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Chiquita Brands International Misses Where it Counts

By Seth Jayson – Updated Apr 10, 2017 at 1:21PM

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Just the facts, Fool.

Chiquita Brands International (NYSE: CQB) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Chiquita Brands International met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased.

Margins increased across the board.

Revenue details
Chiquita Brands International reported revenue of $774.0 million. The two analysts polled by S&P Capital IQ looked for a top line of $777.3 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 details
EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. Non-GAAP EPS of $0.09 for Q1 were 125% higher than the prior-year quarter's $0.04 per share. GAAP EPS were $0.04 for Q1 versus -$0.24 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.3%, 50 basis points better than the prior-year quarter. Operating margin was 3.2%, 200 basis points better than the prior-year quarter. Net margin was 0.3%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $847.5 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $3.06 billion. The average EPS estimate is $0.72.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 272 members out of 316 rating the stock outperform, and 44 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Chiquita Brands International 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 Chiquita Brands International is outperform, with an average price target of $12.00.

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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. 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.

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