Q4 Earnings Highs And Lows: Vital Farms (NASDAQ:VITL) Vs The Rest Of The Perishable Food Stocks
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the perishable food industry, including 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 mixed Q4; on average, revenues missed analyst consensus estimates by 0.8%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but perishable food stocks have shown resilience, with share prices up 5.1% on average since the previous earnings results.
Vital Farms (NASDAQ:VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $135.8 million, up 23.4% year on year, topping analyst expectations by 3.7%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and earnings estimates. Topping off the strong quarter was encouraging guidance, as management's revenue and EBITDA outlooks of $552 million and $57 million cleared Wall Street's projections.
“2023 was another outstanding year for Vital Farms. This company continues to deliver on its ambitious growth targets, and we’ve again proven our resilience by executing for our stakeholders in a dynamic and challenging environment. We ended 2023 with our strongest ever quarter for net revenue, expanded distribution through new and existing retailers and built more trusted relationships with our consumers. We’re well positioned for a big year ahead and on track to be a $1 billion business by 2027,” said Russell Diez-Canseco, Vital Farms’ President and CEO.
The stock is up 29.5% since the results and currently trades at $24.61.
Best Q4: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $258.7 million, up 21.2% year on year, outperforming analyst expectations by 22.8%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Mission Produce pulled off the biggest analyst estimates beat among its peers. The stock is up 5.9% since the results and currently trades at $11.33.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $1.01 billion, down 3% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue narrowly topping analysts' expectations. That stood out as a positive in these results. On the other hand, its operating margin missed analysts' expectations as it recognized a $133.8 million non-cash asset impairment charge (assets in the North American fresh and value-added product segment and goodwill in prepared foods).
The stock is up 4.2% since the results and currently trades at $24.93.
Read our full analysis of Fresh Del Monte Produce's results here.
Calavo (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQGS:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $127.6 million, down 3.9% year on year, falling short of analyst expectations by 49.5%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Calavo had the weakest performance against analyst estimates among its peers. The stock is down 15.4% since the results and currently trades at $24.18.
Read our full, actionable report on Calavo here, it's free.
Dole (NYSE:DOLE)
Cherished for its delicious, world-famous pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Dole reported revenues of $2.07 billion, up 1.5% year on year, falling short of analyst expectations by 4.7%. It was a mixed quarter for the company, with EPS exceeding expectations. On the other hand, its revenue unfortunately missed.
The stock is up 5% since the results and currently trades at $11.67.
Read our full, actionable report on Dole here, it's free.
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