As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at perishable food stocks, starting with Mission Produce (NASDAQ:AVO).
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 Q3. As a group, revenues beat analysts’ consensus estimates by 9.3%.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
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 $354.4 million, up 37.4% year on year. This print exceeded analysts’ expectations by 63.5%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
“Mission delivered a strong fourth quarter that rounded out an exceptional full year fiscal 2024 performance where we realized $1.23 billion in revenue and generated $107.8 million in adjusted EBITDA, demonstrating the strength of our business model and industry leading positioning,” stated Steve Barnard, CEO of Mission.
Mission Produce pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.1% since reporting and currently trades at $12.06.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free .
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 $1.02 billion, up 1.6% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $31.10.
Is now the time to buy Fresh Del Monte Produce? Access our full analysis of the earnings results here, it’s free .
Weakest 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 $170 million, up 19.5% year on year, exceeding analysts’ expectations by 5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
As expected, the stock is down 2.6% since the results and currently trades at $23.53.
Read our full analysis of Calavo’s results here.
Freshpet (NASDAQ:FRPT)
Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $253.4 million, up 26.3% year on year. This result beat analysts’ expectations by 2%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Freshpet pulled off the highest full-year guidance raise among its peers. The stock is up 18.5% since reporting and currently trades at $158.52.
Read our full, actionable report on Freshpet 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 $13.57 billion, up 1.6% year on year. This print surpassed analysts’ expectations by 1%. It was an exceptional quarter as it also logged a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 4% since reporting and currently trades at $56.50.
Read our full, actionable report on Tyson Foods here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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