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Fresh Del Monte Produce Whiffs on Earnings

Wednesday - 5/1/2013, 2:00am  ET

Fresh Del Monte Produce reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q1), Fresh Del Monte Produce beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Fresh Del Monte Produce reported revenue of $918.8 million. The two analysts polled by S&P Capital IQ expected to see a top line of $877.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.71. The three earnings estimates compiled by S&P Capital IQ anticipated $0.95 per share. GAAP EPS of $0.71 for Q1 were 34% lower than the prior-year quarter's $1.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.7%, 180 basis points worse than the prior-year quarter. Operating margin was 5.8%, 170 basis points worse than the prior-year quarter. Net margin was 4.5%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $905.5 million. On the bottom line, the average EPS estimate is $0.89.

Next year's average estimate for revenue is $3.36 billion. The average EPS estimate is $1.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 183 members out of 227 rating the stock outperform, and 44 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Fresh Del Monte Produce a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fresh Del Monte Produce is outperform, with an average price target of $29.00.

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This article was originally published as Fresh Del Monte Produce Whiffs on Earningson Fool.com

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