Chiquita Brands International Earnings Cheat Sheet: Net Income Declines

Chiquita Brands International Inc. (NYSE:CQB) reported its results for the second quarter. Chiquita Brands International and its subsidiaries operate as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brands.

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Chiquita Brands International Earnings Cheat Sheet for the Second Quarter

Results: Net income for Chiquita Brands International Inc. fell to $78 million ($1.68 per share) vs. $94.6 million ($2.06 per share) a year earlier. This is a decline of 17.6% from the year earlier quarter.

Revenue: Fell 5.1% to $870 million from the year earlier quarter.

Actual vs. Wall St. Expectations: The mean estimate for CQB was $1.14. Analysts were expecting revenue of $882.5 million.

Quoting Management: “Our second quarter results reflect the challenges we highlighted previously,” said Fernando Aguirre, chairman and chief executive officer. “As expected, salad volumes in the second quarter were lower than last year. However, the combination of our marketing investments, Fresh Rinse technology and better cost efficiencies are already delivering new distribution points which will result in better volume comparisons the rest of the year. Also, in bananas, we delivered another solid quarter of performance despite softening of local European pricing in late May and June.”

Key Stats:

Margins contracted in the first quarter after expanding the quarter before. Gross margin fell 1.8 percentage points to 17.7% from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 3.9 percentage points to 16.5% from the year earlier quarter.

Over the last five quarters, revenue has fallen an average of 5.5% year over year. The biggest drop came in the fourth quarter of the last fiscal year, when revenue fell 11.5% from the year earlier quarter.

Competitors to Watch: Fresh Del Monte Produce Inc. (NYSE:FDP), Dole Food Company, Inc. (NYSE:DOLE), Total Produce plc (NYSE:TOT), Alico (NASDAQ:ALCO), Limoneira (NASDAQ:LMNR), Inventure Foods (NASDAQ:SNAK), ConAgra (NYSE:CAG), Seneca Foods (NASDAQ:SENEB) and TreeHouse (NYSE:THS).

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(Source: Xignite Financials)