FDP Intrinsic Stock Value – Fresh Del Monte Produce Reports 4 Cent Miss on Non-GAAP EPS, $30M Revenue Miss
May 4, 2023
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The company reported a Non-GAAP EPS of $0.55, missing analyst expectations by 4 cents.
Additionally, revenue of $1.13B was lower than anticipated by $30M. Fresh Del Monte ($NYSE:FDP) Produce is a leading producer and distributor of fresh and value-added fruits and vegetables in North America, Europe, and Asia/Pacific. It has a strong presence in the produce industry and sells products globally through its retail, food service, and industrial channels. Fresh Del Monte Produce also produces and distributes an array of prepared fruit and vegetable products. The company is a publicly traded entity on the New York Stock Exchange (NYSE: FDP). Investors were expecting a better performance from Fresh Del Monte Produce, but the company failed to deliver. The 4 cent miss on Non-GAAP EPS along with the $30M revenue miss was a major disappointment to shareholders.
Earnings
In its earning report for the fourth quarter of FY2022 ending December 31 2022, FRESH DEL MONTE PRODUCE reported total revenue of 1040.0M USD and a net income of 18.3M USD. This is a 2.2% increase in total revenue from 1002.3M USD in the prior year, but a 263.4% decrease in net income. Over the last three years, total revenue for the company has increased from 1002.3M USD to 1040.0M USD. However, despite the increase in total revenue, the company faced a 4 cent miss on non-GAAP EPS and a 30M USD miss on total revenue compared to analyst estimates.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FDP. More…
| Total Revenues | Net Income | Net Margin |
| 4.44k | 98.6 | 2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FDP. More…
| Operations | Investing | Financing |
| 61.8 | -49.1 | -12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FDP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.46k | 1.48k | 39.82 |
Key Ratios Snapshot
Some of the financial key ratios for FDP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.3% | 13.5% | 3.2% |
| FCF Margin | ROE | ROA |
| 0.3% | 4.7% | 2.6% |
Price History
This sent the stock price plummeting as it opened at $27.6 and closed at $26.5, a drop of 7.4% from the previous closing price of $28.6. Investors were clearly disappointed by the results and reacted accordingly. Despite the bad news, the company is still committed to delivering healthy and innovative products to customers worldwide. With its extensive experience in the produce industry, FRESH DEL MONTE PRODUCE is well-positioned to continue to be a leader in fresh and healthy produce products in the coming years. Live Quote…
Analysis – FDP Intrinsic Stock Value
At GoodWhale, we’ve analyzed the financials of FRESH DEL MONTE PRODUCE and have determined that its fair value is around $28.2. This figure was calculated using our proprietary Valuation Line, which takes into account industry trends, company fundamentals, and industry performance. Currently, FRESH DEL MONTE PRODUCE stock is trading at $26.5, implying that it is undervalued by 6.1%. As such, it may be a good time to invest in this stock for those looking for a potential bargain. More…
Peers
Fresh Del Monte Produce Inc is one of the leading companies in the fresh fruit and vegetable industry. The company has a wide variety of products and services that are offered to their customers. They have a strong global presence and are constantly innovating to stay ahead of the competition. Some of their main competitors include Vilmorin & Cie, Apex Frozen Foods Ltd, Helio SA.
– Vilmorin & Cie ($LTS:0HJC)
Vilmorin & Cie is a French company that specializes in the breeding and distribution of seeds. The company has a market cap of 1.02B as of 2022 and a return on equity of 7.29%. Vilmorin & Cie has a long history, dating back to the 17th century, and is one of the oldest seed companies in the world. The company has a strong presence in Europe and North America, and is continuing to expand its operations globally.
– Apex Frozen Foods Ltd ($BSE:540692)
Apex Frozen Foods Ltd has a market cap of 8.79B as of 2022, a Return on Equity of 12.21%. The company is engaged in the business of processing and marketing frozen shrimp and fish products. Its products are sold in the United States, Europe, Japan and other Asian countries. The company has a strong presence in the frozen shrimp market with a market share of approximately 20%.
– Helio SA ($LTS:0LU6)
Helio SA is a publicly traded company with a market capitalization of 57.02 million as of 2022. The company has a return on equity of 11.55%. Helio SA is engaged in the business of providing environmental and engineering consulting services. The company was founded in 1997 and is headquartered in Santiago, Chile.
Summary
Fresh Del Monte Produce reported a non-GAAP earnings per share (EPS) of $0.55 for the quarter, missing analysts’ estimates by $0.04. Revenue also missed estimates by $30 million, coming in at $1.13 billion. As a result, the stock price of the company dropped on the day of the earnings announcement. Despite the missed estimates, Fresh Del Monte Produce is still viewed as a solid investment opportunity for those looking for exposure to the food and beverage industry.
The company has a strong track record of growth and profitability, and maintains its position as one of the leading providers in its sector. Investors should monitor the company closely, looking for potential catalysts that could drive the stock up in the future.
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