Fresh Del Monte Produce
The 10-second takeaway
For the quarter ended June 28 (Q2), Fresh Del Monte Produce beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Gross margins contracted, operating margins dropped, net margins grew.
Fresh Del Monte Produce chalked up revenue of $1.02 billion. The two analysts polled by S&P Capital IQ predicted a top line of $955.6 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $957.6 million.
EPS came in at $1.02. The three earnings estimates compiled by S&P Capital IQ forecast $0.81 per share. Non-GAAP EPS of $1.02 for Q2 were 1.0% higher than the prior-year quarter's $1.01 per share. GAAP EPS of $1.10 for Q2 were 11% higher than the prior-year quarter's $0.99 per share.
For the quarter, gross margin was 10.3%, 190 basis points worse than the prior-year quarter. Operating margin was 6.1%, 130 basis points worse than the prior-year quarter. Net margin was 6.1%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $778.7 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $3.43 billion. The average EPS estimate is $1.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 184 members out of 228 rating the stock outperform, and 44 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Fresh Del Monte Produce a green thumbs-up, and 11 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 $28.50.
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