The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Flowers Foods (NYSE:FLO) and the rest of the perishable food stocks fared in Q4.
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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.4%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.5% since the latest 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 $1.11 billion, down 1.6% year on year. This print fell short of analysts’ expectations by 1.5%, but it was still a satisfactory quarter for the company with full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ organic revenue estimates.
"Flowers' strong execution of our portfolio strategy and cost savings initiatives drove fourth quarter and full year 2024 adjusted EPS growth in a difficult economic environment," said Ryals McMullian, chairman and CEO of Flowers Foods.
Unsurprisingly, the stock is down 9.7% since reporting and currently trades at $17.45.
Is now the time to buy Flowers Foods? Access our full analysis of the earnings results 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 $334.2 million, up 29.2% year on year, outperforming analysts’ expectations by 17%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Mission Produce scored the biggest analyst estimates beat among its peers. The stock is down 17% since reporting. It currently trades at $9.80.
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, flat year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
As expected, the stock is down 2.8% since the results and currently trades at $30.
Read our full analysis of Fresh Del Monte Produce’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 $76.66 million, up 4% year on year. This number topped analysts’ expectations by 1.9%. Aside from that, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates.
The stock is down 22.5% since reporting and currently trades at $2.75.
Read our full, actionable report on Beyond Meat here, it’s free.
Dole (NYSE:DOLE)
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Dole reported revenues of $2.17 billion, up 4.6% year on year. This result beat analysts’ expectations by 6.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 2.2% since reporting and currently trades at $13.74.
Read our full, actionable report on Dole here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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