Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Vital Farms (NASDAQ: VITL) and the best and worst performers in the perishable food industry.
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%.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results.
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 $166 million, up 22.2% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“2024 was an outstanding year for Vital Farms. We exceeded $600 million in net revenue, keeping us well on track to deliver our $1 billion sales target by 2027.” said Russell Diez-Canseco, Vital Farms’ President and CEO.
Vital Farms pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $34.02.
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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mission Produce pulled off the biggest analyst estimates beat among its peers. The stock is down 15.5% since reporting. It currently trades at $9.98.
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.
The stock is flat since the results and currently trades at $30.60.
Read our full analysis of Fresh Del Monte Produce’s results here.
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 $1.42 billion, up 102% year on year. This number lagged analysts' expectations by 0.8%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EBITDA and gross margin estimates.
Cal-Maine delivered the fastest revenue growth among its peers. The stock is up 10.5% since reporting and currently trades at $100.
Read our full, actionable report on Cal-Maine here, it’s free.
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 result missed analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ organic revenue estimates.
The stock is down 5.8% since reporting and currently trades at $18.21.
Read our full, actionable report on Flowers Foods here, it’s free.
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.
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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