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Winners And Losers Of Q1: Flowers Foods (NYSE:FLO) Vs The Rest Of The Perishable Food Stocks


Radek Strnad /
2024/07/05 6:19 am EDT

Looking back on perishable food stocks' Q1 earnings, we examine this quarter's best and worst performers, including Flowers Foods (NYSE:FLO) 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 0.5% on average since the previous earnings results.

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 mixed quarter for the company, with a decent beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.

"Our solid first quarter results highlight the increasing effectiveness of our portfolio strategy and investments in marketing and innovation," said Ryals McMullian, chairman and CEO of Flowers Foods.

Flowers Foods Total Revenue

The stock is down 14% since the results and currently trades at $21.93.

Read our full report on Flowers Foods 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' earnings estimates.

Mission Produce Total Revenue

Mission Produce delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 12.7% since the results and currently trades at $9.97.

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' earnings estimates. The poor performance was mostly driven by lower banana volumes and prices.

Fresh Del Monte Produce had the weakest performance against analyst estimates in the group. The stock is down 16.4% since the results and currently trades at $21.78.

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

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%. 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 21.2% since the results and currently trades at $132.87.

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

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, surpassing analysts' expectations by 1.5%. It was a decent quarter for the company: Cal-Maine exceeded analysts' revenue and EPS expectations.

Cal-Maine had the slowest revenue growth among its peers. The stock is up 4.4% since the results and currently trades at $61.52.

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

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