Wrapping up Q4 earnings, we look at the numbers and key takeaways for the perishable food stocks, including Fresh Del Monte Produce (NYSE: FDP) and its peers.
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.9%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.
Weakest Q4: Fresh Del Monte Produce (NYSE: FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.01 billion, flat year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.
"Our full-year 2024 results reflect the effectiveness of our strategic focus and operational improvements. This success, achieved despite facing several challenges in 2024, was primarily driven by the exceptional performance of our fresh and value-added products segment, particularly pineapples, avocados, and fresh-cut fruit, which continue to fuel our growth and deliver strong gross margins for the Company,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer.
The stock is down 6.7% since reporting and currently trades at $28.78.
Read our full report on Fresh Del Monte Produce here, it’s free.
Best Q4: Mission Produce (NASDAQ: AVO)
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $334.2 million, up 29.2% year on year, outperforming analysts’ expectations by 17%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.1% since reporting. It currently trades at $9.79.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Beyond Meat (NASDAQ: BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $76.66 million, up 4% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 7.3% since the results and currently trades at $3.29.
Read our full analysis of Beyond Meat’s results here.
Cal-Maine (NASDAQ: CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $954.7 million, up 82.5% year on year. This result topped analysts’ expectations by 27%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
Cal-Maine achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 10.5% since reporting and currently trades at $92.81.
Read our full, actionable report on Cal-Maine here, it’s free.
Freshpet (NASDAQ: FRPT)
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $262.7 million, up 22% year on year. This number came in 0.6% below analysts' expectations. More broadly, it was actually a strong quarter as it recorded an impressive beat of analysts’ EBITDA estimates.
Freshpet had the weakest full-year guidance update among its peers. The stock is down 34.3% since reporting and currently trades at $85.82.
Read our full, actionable report on Freshpet here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
