Fresh Del Monte Produce Earnings: Here’s Why Shares are Down Now

Fresh Del Monte Produce Inc. (NYSE:FDP) 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. Shares are down 0.24%.

Fresh Del Monte Produce Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.03% to $1.02 in the quarter versus EPS of $0.99 in the year-earlier quarter.

Revenue: Rose 6.92% to $1.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fresh Del Monte Produce Inc. reported adjusted EPS income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.81. It beat the average revenue estimate of $955.55 million.

Quoting Management: “We were pleased with the strong top line performance and momentum generated during the second quarter of 2013,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Our growth in the second quarter was fundamentally driven by our ability to increase sales through core product line growth, extending our reach in non-conventional delivery channels, expanding our global brand presence, product innovation, and continued consumer demand for healthy, fresh produce. We believe Fresh Del Monte’s financial depth and flexibility allows us to continue to leverage these capabilities and strengthen our leadership position in the global fresh produce industry.”

Key Stats (on next page)…

Revenue increased 11.44% from $918.8 million in the previous quarter. EPS increased 43.66% from $0.71 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.28 and has not changed. For the current year, the average estimate has moved down from a profit of $1.72 to a profit of $1.7 over the last ninety days.

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