The Gory Details on Fresh Del Monte Produce's Double Fumble

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Fresh Del Monte Produce (NYS: FDP) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Fresh Del Monte Produce missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP loss per share didn't move.

Margins shrank across the board.

Revenue details
Fresh Del Monte Produce booked revenue of $780.8 million. The six analysts polled by S&P Capital IQ anticipated revenue of $837.3 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $816.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.15. The six earnings estimates compiled by S&P Capital IQ forecast $0.15 per share on the same basis. GAAP EPS of -$0.17 were the same as the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 3.7%, 190 basis points worse than the prior-year quarter. Operating margin was -2.3%, 290 basis points worse than the prior-year quarter. Net margin was -1.3%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $980.5 million. On the bottom line, the average EPS estimate is $1.03.

Next year's average estimate for revenue is $3.71 billion. The average EPS estimate is $2.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 175 members out of 223 rating the stock outperform, and 48 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Fresh Del Monte Produce a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fresh Del Monte Produce is hold, with an average price target of $27.75.

Over the decades, small-cap stocks, like Fresh Del Monte Produce have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Fresh Del Monte Produce. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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