Chiquita Brands International Earnings: Here’s Why Investors are Ambivalent Now

Chiquita Brands International Inc. (NYSE:CQB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Chiquita Brands International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25% to $0.05 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 2.46% to $774 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chiquita Brands International Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.15. It missed the average revenue estimate of $777.3 million.

Quoting Management: “We continue to execute against our previously announced restructuring plans and strategy to focus on our core products,” said Ed Lonergan, Chiquita`s president and chief executive officer. “We are pleased that our first quarter results reflect the initial benefits from these strategic decisions and actions. The improvements overcame euro exchange rates that negatively impacted this quarter by $12 million after hedging, and we view these results as a clear sign of the progress we are making and a good first step toward achieving our long-term financial targets.”

Key Stats (on next page)…

Revenue increased 4.95% from $737.52 million in the previous quarter. EPS increased to $0.05 in the quarter versus EPS of $-0.28 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.75 to a profit $0.55. For the current year, the average estimate has moved down from a profit of $0.97 to a profit of $0.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)