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Reflecting On Perishable Food Stocks’ Q1 Earnings: Cal-Maine (NASDAQ:CALM)


Jabin Bastian /
2024/07/02 3:42 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 Cal-Maine (NASDAQ:CALM).

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%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and perishable food stocks have held roughly steady amidst all this, with share prices up 0.5% on average since the previous earnings results.

Cal-Maine (NASDAQ:CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $703.1 million, down 29.5% year on year, topping analysts' expectations by 1.5%. It was a strong quarter for the company, with revenue and EPS exceeding expectations.

Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “We are very pleased with Cal-Maine Foods’ strong financial and operating performance for the third quarter of fiscal 2024. Our sales reflect lower average selling prices compared to a year ago, when the shell egg industry experienced record high market prices due primarily to the impact of highly pathogenic avian influenza (“HPAI”) and other market factors resulting in a significant reduction in supply.

Cal-Maine Total Revenue

Cal-Maine delivered the slowest revenue growth of the whole group. The stock is up 6.6% since the results and currently trades at $62.78.

Read our full report on Cal-Maine here, it's free.

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' gross margin estimates.

Mission Produce Total Revenue

Mission Produce scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 14.2% since the results and currently trades at $9.8.

Is now the time to buy Mission Produce? 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. The stock is down 16.8% since the results and currently trades at $21.67.

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

Flowers Foods (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 13.7% since the results and currently trades at $22.

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

Dole (NYSE:DOLE)

Cherished for its delicious, world-famous pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Dole reported revenues of $2.12 billion, up 6.6% year on year, in line with analysts' expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is up 2% since the results and currently trades at $12.5.

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

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