Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Tyson Foods (NYSE: TSN) 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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 2.5% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.7% 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 $13.88 billion, up 3.6% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.
"Our third quarter results demonstrate the strength of our multi-protein, multi-channel portfolio and our relentless focus on operational excellence," said Donnie King, President & CEO of Tyson Foods.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $52.89.
Is now the time to buy Tyson Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $357.7 million, up 10.4% year on year, outperforming analysts’ expectations by 11.7%. The business had an incredible quarter with a beat of analysts’ EPS and gross margin estimates.
Mission Produce scored 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 7.6% since reporting. It currently trades at $11.89.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $922.6 million, up 17.4% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $93.50.
Read our full analysis of Cal-Maine’s results here.
Pilgrim's Pride (NASDAQ: PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.76 billion, up 4.3% year on year. This print surpassed analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
The stock is down 20.1% since reporting and currently trades at $38.13.
Read our full, actionable report on Pilgrim's Pride here, it’s free for active Edge members.
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 $2.43 billion, up 14.3% year on year. This result topped analysts’ expectations by 11.2%. It was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is down 11.7% since reporting and currently trades at $12.93.
Read our full, actionable report on Dole here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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