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 Tyson Foods (NYSE: TSN) and the rest of the perishable food stocks fared in Q3.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 8.1%.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.
Tyson Foods (NYSE: TSN)
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.57 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.
"We delivered significant improvement in profitability for the fourth quarter and full year. We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio," stated Donnie King, President & CEO of Tyson Foods.
The stock is down 2.8% since reporting and currently trades at $57.20.
Is now the time to buy Tyson Foods? Access our full analysis of the earnings results here, it’s free.
Best Q3: Mission Produce (NASDAQ: AVO)
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $354.4 million, up 37.4% year on year, outperforming analysts’ expectations by 50.2%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Mission Produce pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.6% since reporting. It currently trades at $12.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Calavo (NASDAQ: CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQ: CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $170 million, up 19.5% year on year, exceeding analysts’ expectations by 5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
As expected, the stock is down 3.6% since the results and currently trades at $23.30.
Read our full analysis of Calavo’s results here.
Vital Farms (NASDAQ: VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $145 million, up 31.3% year on year. This number was in line with analysts’ expectations. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The stock is up 22.2% since reporting and currently trades at $45.10.
Read our full, actionable report on Vital Farms here, it’s free.
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 $954.7 million, up 82.5% year on year. This print beat analysts’ expectations by 27%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
Cal-Maine achieved the fastest revenue growth among its peers. The stock is up 10.7% since reporting and currently trades at $114.83.
Read our full, actionable report on Cal-Maine here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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