Dole Food Earnings: Here’s Why Investors Don’t Like These Results

Dole Food Company Inc. (NYSE:DOLE) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.96%.

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Dole Food Company Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20% to $0.12 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 35.21% to $1.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dole Food Company Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.14. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Dole’s first quarter 2013 Adjusted EBITDA from continuing operations reflected an additional $34 million charge to fully provide for the previously announced EU General Court antitrust decision. “Compared with 2012, excluding this amount, Adjusted EBITDA improved to $68 million from $44 million for Dole’s continuing operations. Dole’s first quarter performance is in line with our full-year expectations for 2013, at the low end of the guidance range of $150–$170 million,” said C. Michael Carter, Dole’s President and Chief Operating Officer. “First quarter Adjusted EBITDA from both of our remaining lines of business exceeded last year. Earnings grew in all of our core fresh fruit product lines. Fresh vegetables performance improved largely due to a turn-around in the fresh-packed product line.”

Key Stats (on next page)…

Revenue decreased 199.84% from $1.06 billion in the previous quarter. EPS increased to $0.12 in the quarter versus EPS of $-0.59 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 $0.55 to a profit $0.4. For the current year, the average estimate has moved down from a profit of $0.99 to a profit of $0.6 over the last ninety days.

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