Looking back on perishable food stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Calavo (NASDAQ: CVGW) 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 12.5% since the latest earnings results.
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 $178.8 million, flat year on year. This print fell short of analysts’ expectations by 7%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates and a miss of analysts’ gross margin estimates.
Management Commentary"Our third quarter results highlight both the challenges and the opportunities in our business," said Lee Cole, President and Chief Executive Officer of Calavo Growers,
Unsurprisingly, the stock is down 13.4% since reporting and currently trades at $23.79.
Read our full report on Calavo 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 8.5% since reporting. It currently trades at $11.77.
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.
As expected, the stock is down 3.4% since the results and currently trades at $91.14.
Read our full analysis of Cal-Maine’s results here.
Beyond Meat (NASDAQ: BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $74.96 million, down 19.6% year on year. This result lagged analysts' expectations by 8.6%. Overall, it was a disappointing quarter as it also logged revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.
Beyond Meat had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 42.2% since reporting and currently trades at $1.69.
Read our full, actionable report on Beyond Meat here, it’s free for active Edge members.
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 $1.24 billion, up 1.5% year on year. This number missed analysts’ expectations by 2%. It was a slower quarter as it also produced a miss of analysts’ EBITDA estimates and a miss of analysts’ organic revenue estimates.
Flowers Foods delivered the highest full-year guidance raise among its peers. The stock is down 22.8% since reporting and currently trades at $12.80.
Read our full, actionable report on Flowers Foods 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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