Let's dig into the relative performance of Calavo (NASDAQ:CVGW) and its peers as we unravel the now-completed Q1 perishable food earnings season.
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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and perishable food stocks have held roughly steady amidst all this, with share prices up 0.8% on average since the previous earnings results.
Calavo (NASDAQ:CVGW) A trailblazer in the avocado industry, Calavo Growers (NASDAQGS:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $184.4 million, down 24.6% year on year, exceeding analysts' expectations by 11.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
Management Commentary “We are pleased with our second quarter results, which reflect strong operational performance across our portfolio, demonstrating Calavo’s earnings capacity,” said Lee Cole, President and Chief Executive Officer of Calavo Growers,
The stock is down 14.3% since reporting and currently trades at $21.46.
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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 and gross margin estimates.
Mission Produce achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 16.2% since reporting. It currently trades at $9.57.
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. As expected, the stock is down 17.7% since the results and currently trades at $21.43.
Freshpet (NASDAQ:FRPT) Contrasting itself with the typical processed pet foods found throughout the industry, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $223.8 million, up 33.6% year on year, surpassing analysts' expectations by 3.6%. Revenue aside, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
Freshpet had the weakest full-year guidance update among its peers. The stock is up 16.2% since reporting and currently trades at $127.39.
Beyond Meat (NASDAQ:BYND) A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQGS:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Beyond Meat reported revenues of $75.6 million, down 18% year on year, in line with analysts' expectations. Zooming out, it was a weak quarter for the company with a miss of analysts' gross margin and earnings estimates.
The stock is down 16.4% since reporting and currently trades at $6.86.
This content was originally published on Stock Story
