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

Fresh Del Monte Produce Inc. (NYSE:FDP) 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 0.04%.

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Fresh Del Monte Produce Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 34.26% to $0.71 in the quarter versus EPS of $1.08 in the year-earlier quarter.

Revenue: Rose 2.33% to $918.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fresh Del Monte Produce Inc. reported adjusted EPS income of $0.71 per share. By that measure, the company missed the mean analyst estimate of $0.95. It beat the average revenue estimate of $877.2 million.

Quoting Management: “We were pleased with the overall progress we made towards our strategic initiatives during the first quarter of 2013,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Our team did an exceptional job spurring growth and amassing greater market share led by gains in our fresh-cut business. However, these operational achievements and stronger net sales were countered by ongoing challenges in Europe, which negatively affected our profitability.”

Key Stats (on next page)…

Revenue increased 18.26% from $776.9 million in the previous quarter. EPS increased to $0.71 in the quarter versus EPS of $0.00 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 $1.06 to a profit $0.93. For the current year, the average estimate has moved down from a profit of $2.66 to a profit of $2.16 over the last ninety days.

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