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Perishable Food Stocks Q1 Earnings Review: Mission Produce (NASDAQ:AVO) Shines


Jabin Bastian /
2024/07/11 5:22 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how perishable food stocks fared in Q1, starting with Mission Produce (NASDAQ:AVO).

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%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the perishable food stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.8% on average since the previous earnings results.

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, exceeding analysts' expectations by 31.4%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.

“We are pleased to deliver a second consecutive quarter of record adjusted EBITDA results, demonstrating continued strong momentum in per-unit margins which resulted in a $12.6 million or 166% improvement in our adjusted EBITDA performance, versus prior year,” commented Steve Barnard, CEO of Mission.

Mission Produce Total Revenue

Mission Produce scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is down 16.2% since reporting and currently trades at $9.57.

Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it's free.

Vital Farms (NASDAQ:VITL)

With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.

Vital Farms reported revenues of $147.9 million, up 24.1% year on year, outperforming analysts' expectations by 8.1%. It was an incredible quarter for the company with an impressive beat of analysts' earnings and gross margin estimates.

Vital Farms Total Revenue

Vital Farms scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 54.3% since reporting. It currently trades at $46.15.

Is now the time to buy Vital Farms? Access our full analysis of the earnings results here, it's free.

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.

Read our full analysis of Fresh Del Monte Produce's results here.

Tyson Foods (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, flat year on year, in line with analysts' expectations. Looking more broadly, it was a very strong quarter for the company with an impressive beat of analysts' earnings and gross margin estimates.

The stock is down 9.6% since reporting and currently trades at $55.94.

Read our full, actionable report on Tyson Foods here, it's free.

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, surpassing analysts' expectations by 11.2%. Looking more broadly, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.

The stock is down 14.3% since reporting and currently trades at $21.46.

Read our full, actionable report on Calavo here, it's free.

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