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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