Fresh produce company Fresh Del Monte (NYSE: FDP) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Fresh Del Monte Produce missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.10 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
Is Fresh Del Monte Produce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Fresh Del Monte Produce’s revenue to grow 1.6% year on year to $1.16 billion, a reversal from the 3.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fresh Del Monte Produce has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Fresh Del Monte Produce’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cal-Maine delivered year-on-year revenue growth of 72.2%, beating analysts’ expectations by 21.3%, and USANA reported revenues up 10.8%, topping estimates by 4.7%. Cal-Maine traded up 13.6% following the results while USANA was also up 12.4%.
Read our full analysis of Cal-Maine’s results here and USANA’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 3.8% on average over the last month. Fresh Del Monte Produce is up 9.9% during the same time and is heading into earnings with an average analyst price target of $38.50 (compared to the current share price of $35.63).
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