The 10-second takeaway
For the quarter ended June 15 (Q2), Dole Food beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins shrank, net margins grew.
Dole Food booked revenue of $1.19 billion. The four analysts polled by S&P Capital IQ predicted revenue of $1.10 billion on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $1.72 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 $0.10. The four earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. Non-GAAP EPS of $0.10 for Q2 were 88% lower than the prior-year quarter's $0.80 per share. GAAP EPS of $0.01 for Q2 were 99% lower than the prior-year quarter's $0.73 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 8.5%, 510 basis points worse than the prior-year quarter. Operating margin was 3.0%, 270 basis points worse than the prior-year quarter. Net margin was 19.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $4.31 billion. The average EPS estimate is $0.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 112 members out of 122 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Dole Food a green thumbs-up, and five 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 $11.50.
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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.