As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the perishable food industry, including Pilgrim's Pride (NASDAQ:PPC) and its peers.
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 4.5%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and perishable food stocks have held roughly steady amidst all this, with share prices up 0.8% on average since the previous earnings results.
Pilgrim's Pride (NASDAQ:PPC) Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.36 billion, up 4.7% year on year, falling short of analysts' expectations by 1.5%. It was a very good quarter for the company, with a solid beat of analysts' gross margin and earnings estimates.
“Although we experienced depressed market conditions and persistent consumer inflation throughout 2023, we saw this as opportunity to enhance our competitive advantage. To that end, we focused on consistent execution of our strategies, controlling what we can control, and maintaining investment in our operations. These efforts further strengthened our business, accelerating our profitable growth as market conditions evolved,” said Fabio Sandri, Pilgrim’s Chief Executive Officer.
The stock is up 9.6% since the results and currently trades at $38.76.
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Best Q1: Mission Produce (NASDAQ:AVO) Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $297.6 million, up 34.6% year on year, outperforming analysts' expectations by 31.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Mission Produce achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 12.8% since the results and currently trades at $9.96.
Weakest Q1: Fresh Del Monte Produce (NYSE:FDP) Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.11 billion, down 1.8% year on year, falling short of analysts' expectations by 3.8%. It was a weak quarter for the company, with a miss of analysts' gross margin and earnings estimates.
Fresh Del Monte Produce had the weakest performance against analyst estimates in the group. The stock is down 15.1% since the results and currently trades at $22.11.
Flowers Foods (NYSE:NYSE:FLO) With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Flowers Foods reported revenues of $1.58 billion, up 2.8% year on year, falling short of analysts' expectations by 0.1%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 13.1% since the results and currently trades at $22.15.
Tyson Foods (NYSE:NYSE:TSN) Started as a simple trucking business, Tyson Foods (NYSE:TSN) today is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.07 billion, down 0.5% year on year, falling short of analysts' expectations by 0.6%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings and gross margin estimates.
The stock is down 7.6% since the results and currently trades at $57.22.
This content was originally published on Stock Story
