Let’s dig into the relative performance of United Natural Foods (NYSE:UNFI) and its peers as we unravel the now-completed Q3 perishable food earnings season.
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 6.8% on average since the latest earnings results.
United Natural Foods (NYSE:UNFI)
With a vast network of 55 distribution centers spanning approximately 30 million square feet of warehouse space, United Natural Foods (NYSE:UNFI) is North America's premier grocery wholesaler distributing natural, organic, and conventional products to over 30,000 retail locations across the US and Canada.
United Natural Foods reported revenues of $7.84 billion, flat year on year. This print fell short of analysts’ expectations by 0.9%, but it was still a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
United Natural Foods delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 10.5% since reporting and currently trades at $37.98.
Is now the time to buy United Natural Foods? Access our full analysis of the earnings results 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 an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.
Mission Produce pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $13.44.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 15.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Calavo delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 10.2% since the results and currently trades at $24.89.
Read our full analysis of Calavo’s results here.
Dole (NYSE:DOLE)
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Dole reported revenues of $2.28 billion, up 10.5% year on year. This result topped analysts’ expectations by 5.7%. However, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
The stock is up 18.2% since reporting and currently trades at $15.53.
Read our full, actionable report on Dole here, it’s free.
Tyson Foods (NYSE:TSN)
Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.86 billion, up 2.2% year on year. This number came in 1.1% below analysts' expectations. More broadly, it was actually a very strong quarter as it produced an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is up 22.2% since reporting and currently trades at $64.38.
Read our full, actionable report on Tyson Foods here, it’s free.
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