FDP Earnings Prediction
The chart below shows how FDP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FDP sees a -2.56% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by +1.51%. This data can give you a slight idea of what to expect for the next quarter's release.
FDP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.01B
0.46%
-0.62%
Gross Margin
6.78%
9.35%
-26.30%
Operating Margin
2.01%
10.44%
-55.33%
Net Margin
2.01%
119.03%
-51.09%
EPS
0.42
118.92%
-52.27%
No Data Available
FDP Earnings Analysis
Fresh Del Monte Produce Inc Corporation (FDP.N) Earnings Conference Call
Positive
Earnings Beat Expectations: Fresh Del Monte Produce Inc. beats earnings expectations with reported EPS of $0.4227, exceeding expectations of $0.42.
Gross Profit Improvement: Gross profit increased by 2% to $358 million from the prior year, with gross margins improving to 8.4% compared to 8.1% in 2023.
Long-Term Debt Reduction: The company achieved a reduction in long-term debt, decreasing it by 39% from $400 million to $144 million, supported by strong cash flow.
Fresh Product Segment Growth: The fresh and value-added product segments, including pineapple, fresh-cut fruit, and avocados, performed exceptionally well, driving growth and improving gross margins.
Ruby Glow Pilot Launch: The company launched the Ruby Glow pilot for pineapples, responding to global demand that exceeds supply, and established a five-year growth strategy to support customers globally.
Sustainability Achievement Award: Fresh Del Monte was recognized with the SEAL Environmental Initiative Award for surpassing emissions reduction targets seven years ahead of schedule, highlighting their commitment to sustainability.
Dividend Increase Announcement: The company increased its quarterly dividend for the third consecutive year, from $0.25 to $0.30 per share, reaffirming its commitment to shareholders.
Consistent Adjusted EBITDA Performance: Adjusted EBITDA for the full year of 2024 was $236 million, maintaining a consistent performance compared to the prior year.
Negative
Net Sales Decline: Total net sales decreased by 1% year over year to $4.28 billion, indicating a decline in overall revenue.
Banana Segment Sales Decline: The banana segment experienced a significant drop in net sales, decreasing to $1.476 billion from $1.638 billion in the prior year, primarily due to lower sales volume and competitive market pressures.
Banana Segment Profit Decline: Gross profit for the banana segment fell sharply to $87 million compared to $163 million in the prior year, reflecting higher production costs and lower sales.
Foreign Exchange Loss Impact: The company faced foreign exchange losses in the fourth quarter, resulting in a net loss of $3 million compared to a gain of $4 million in the previous year.
Operating Income Decline: Adjusted operating income for the full year decreased to $159 million from $165 million, driven by higher selling, general, and administrative expenses.
Fruit Supply Constraints: The company reported a tight supply of bananas and pineapples entering 2025 due to adverse weather conditions, impacting production volumes.
International Tariff Risks: Potential international tariffs on imports from key trade partners pose a risk to the company's operations and could add to global trade volatility.
Operational Consolidation Strategy: The decision to consolidate manpacking operations and discontinue several product lines indicates challenges in that segment, with the sale of Fresh Leaf Farms for $18 million reflecting a strategic shift.
FDP FAQs
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FDP Earning Call Sentiment
Fresh Del Monte Produce Inc. (NYSE:FDP) Q4 2024 Earnings Call Transcript
FDP.N
0.28%Positive
The earnings call reflects a positive sentiment overall, with increased dividends, a share repurchase program, and improved financial metrics. Despite competitive pressures and some operational risks, the company is making strategic moves in product development and market expansion. The Q&A reveals some uncertainties, but the positive financial results, along with a strong shareholder return plan, suggest a positive stock price movement. Given the market cap of $1.05 billion, the stock is likely to see a moderate positive reaction, in the range of 2% to 8%.
