Perishable Food Stocks Q2 In Review: Freshpet (NASDAQ:FRPT) Vs Peers
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Freshpet (NASDAQ:FRPT) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.7%.
Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.
Freshpet (NASDAQ:FRPT)
Contrasting itself with the typical processed pet foods found throughout the industry, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $235.3 million, up 28.3% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings and EBITDA estimates.
"Freshpet is delivering disciplined growth. That has enabled us to significantly improve profitability while continuing to deliver category-leading net sales growth. The momentum we have today gives us even greater confidence in our ability to achieve our 2027 targets, a number of which we have already exceeded,” commented Billy Cyr, Freshpet’s Chief Executive Officer.
Interestingly, the stock is up 9.3% since reporting and currently trades at $133.48.
Is now the time to buy Freshpet? Access our full analysis of the earnings results here, it’s free.
Best Q2: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $324 million, up 23.9% year on year, outperforming analysts’ expectations by 40.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings and gross margin estimates.
Mission Produce delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $11.78.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $785.9 million, up 71.1% year on year, exceeding analysts’ expectations by 11.5%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 16.3% since the results and currently trades at $89.43.
Read our full analysis of Cal-Maine’s results here.
Flowers Foods (NYSE:FLO)
With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Flowers Foods reported revenues of $1.22 billion, flat year on year. This print lagged analysts' expectations by 1.4%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue growth estimates.
Flowers Foods had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $22.63.
Read our full, actionable report on Flowers Foods 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 $1.14 billion, down 3.5% year on year. This number lagged analysts' expectations by 3.5%. Zooming out, it was actually a very strong quarter as it produced an impressive beat of analysts’ earnings and gross margin estimates.
Fresh Del Monte Produce had the weakest performance against analyst estimates among its peers. The stock is up 16.7% since reporting and currently trades at $28.73.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free.
Market Update
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and them to your watchlist. These companies are posied for grow regardless of the political or macroeconomic climate.
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