Results: Fresh Del Monte Produce Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, Fresh Del Monte Produce Inc. (NYSE:FDP) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.0% to hit US$1.0b. Fresh Del Monte Produce also reported a statutory profit of US$0.88, which was an impressive 91% above what the analyst had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Fresh Del Monte Produce

After the latest results, the solitary analyst covering Fresh Del Monte Produce are now predicting revenues of US$4.42b in 2025. If met, this would reflect an okay 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 796% to US$2.86. In the lead-up to this report, the analyst had been modelling revenues of US$4.36b and earnings per share (EPS) of US$2.54 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 18% to US$39.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Fresh Del Monte Produce is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.8% annually. So while Fresh Del Monte Produce's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fresh Del Monte Produce following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 4 warning signs for Fresh Del Monte Produce that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.