Dole Food Earnings: Here’s Why Investors are Ambivalent Now

Dole Food Company Inc. (NYSE:DOLE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Dole Food Company Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65% to $0.28 in the quarter versus EPS of $0.80 in the year-earlier quarter.

Revenue: Decreased 30.85% to $1.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dole Food Company Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.11. It beat the average revenue estimate of $1.1 billion.

Quoting Management: “The variance between second quarter performance and our second quarter guidance is mainly due to lower than expected banana cost of fruit and corporate overhead, higher than expected earnings in our Chilean business due to timing of operating expenses, and higher pineapple earnings, reduced by even lower than expected earnings from our fresh vegetables line of business, due to greater losses in berries,” said Mr. Carter. “The results this quarter are reflective of the inherent volatility and unpredictability of earnings from Dole’s smaller footprint as an international commodity produce company.”

Key Stats (on next page)…

Revenue increased 12.77% from $1.05 billion in the previous quarter. EPS decreased 44% from $0.50 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 $0.12 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $0.6 to a profit of $0.44 over the last ninety days.

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

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