Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Vital Farms (NASDAQ: VITL) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
Vital Farms (NASDAQ: VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $198.9 million, up 37.2% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
"Our third quarter results demonstrate the power of disciplined execution across our business,” said Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer.
Vital Farms pulled off the fastest revenue growth and highest full-year guidance raise 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 6.5% since reporting and currently trades at $30.10.
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 achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.4% since reporting. It currently trades at $11.76.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $922.6 million, up 17.4% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Cal-Maine delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.4% since the results and currently trades at $79.65.
Read our full analysis of Cal-Maine’s results here.
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. This number surpassed analysts’ expectations by 2.1%. However, it was a softer quarter as it recorded revenue guidance for next quarter missing analysts’ expectations.
Beyond Meat had the slowest revenue growth among its peers. The stock is down 31.2% since reporting and currently trades at $0.93.
Read our full, actionable report on Beyond Meat here, it’s free for active Edge members.
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, flat year on year. This print came in 1.9% below analysts' expectations. In spite of that, it was a very strong quarter as it logged an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is up 2% since reporting and currently trades at $35.04.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free for active Edge members.
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