Unpacking Q4 Earnings: Flowers Foods (NYSE:FLO) In The Context Of Other Perishable Food Stocks
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the perishable food industry, including Flowers Foods (NYSE:FLO) 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 10 perishable food stocks we track reported a mixed Q4; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but perishable food stocks have shown resilience, with share prices up 7.7% on average since the previous earnings results.
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 $1.13 billion, up 4.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates. The company called out a challenging backdrop for operations, but one bright spot was that their 'Dave's Killer Bread' brand became a $1 billion brand, which is a major milestone in the consumer staples world.
"Flowers' fourth quarter and full year 2023 results underscore the strength of our leading brands, as we delivered record sales despite difficult market conditions," said Ryals McMullian, chairman and CEO of Flowers Foods.
The stock is down 2.4% since the results and currently trades at $22.85.
Read our full report on Flowers Foods here, it's free.
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 estimates.
Mission Produce pulled off the biggest analyst estimates beat among its peers. The stock is up 7.2% since the results and currently trades at $11.47.
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 a miss of analysts' earnings estimates.
The stock is up 5.5% since the results and currently trades at $25.23.
Read our full analysis of Fresh Del Monte Produce's results here.
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 $215.4 million, up 29.9% year on year, surpassing analyst expectations by 5.3%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Freshpet scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 22.4% since the results and currently trades at $112.5.
Read our full, actionable report on Freshpet here, it's free.
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 14.9% since the results and currently trades at $24.31.
Read our full, actionable report on Calavo here, it's free.
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