Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Calavo (NASDAQ:CVGW) and the best and worst performers in the perishable food industry.
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 12 perishable food stocks we track reported a satisfactory Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results.
Slowest Q3: Calavo (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $124.7 million, down 26.6% year on year. This print fell short of analysts’ expectations by 15.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
“Over the past century, the Calavo team has built this Company into a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole,” said B. John Lindeman, President and Chief Executive Officer of Calavo Growers.
Calavo delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 9.4% since reporting and currently trades at $24.71.
Read our full report on Calavo here, it’s free.
Best Q3: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $319 million, down 10% year on year, outperforming analysts’ expectations by 8.5%. The business had an incredible quarter with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
Mission Produce delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $13.67.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results 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 specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $70.22 million, down 13.3% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 35.7% since the results and currently trades at $0.86.
Read our full analysis of Beyond Meat’s results here.
Pilgrim's Pride (NASDAQ:PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.76 billion, up 3.8% year on year. This print surpassed analysts’ expectations by 0.8%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
The stock is up 13.5% since reporting and currently trades at $43.28.
Read our full, actionable report on Pilgrim's Pride here, it’s free.
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 $1.23 billion, up 3% year on year. This result was in line with analysts’ expectations. However, it was a slower quarter as it produced a miss of analysts’ EBITDA estimates.
The stock is down 4.1% since reporting and currently trades at $11.17.
Read our full, actionable report on Flowers Foods here, it’s free.
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