Wrapping up Q2 earnings, we look at the numbers and key takeaways for the perishable food stocks, including Tyson Foods (NYSE:TSN) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%.
Inflation progressed towards the Fed's 2% goal recently, leading the central bank to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive as of late, employment measures bordered on worrisome. The markets will be assessing whether this rate cut (and more potential ones in 2024 and 2025) are ideal timing to support the economy or a bit too late for a macro that has already cooled too much.
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 $13.35 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
"Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business," stated Donnie King, President & CEO of Tyson Foods.
Interestingly, the stock is up 1.3% since reporting and currently trades at $62.
Is now the time to buy Tyson Foods? Access our full analysis of the earnings results here, it’s free.
Best Q2: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $324 million, up 23.9% year on year, outperforming analysts’ expectations by 40.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings and gross margin estimates.
Mission Produce delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 26.1% since reporting. It currently trades at $13.49.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $640.8 million, down 7% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 10% since the results and currently trades at $71.32.
Read our full analysis of Cal-Maine’s results here.
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, flat year on year. This print topped analysts’ expectations by 1.3%. It was a strong quarter as it also logged a decent beat of analysts’ operating margin and earnings estimates.
The stock is up 16.4% since reporting and currently trades at $16.93.
Read our full, actionable report on Dole here, it’s free.
Beyond Meat (NASDAQ:BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Beyond Meat reported revenues of $93.19 million, down 8.8% year on year. This result surpassed analysts’ expectations by 5.4%. It was a very strong quarter as it also produced an impressive beat of analysts’ gross margin estimates and full-year revenue guidance exceeding analysts’ expectations.
Beyond Meat pulled off the highest full-year guidance raise among its peers. The stock is up 21.5% since reporting and currently trades at $6.38.
Read our full, actionable report on Beyond Meat here, it’s free.
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