Dole Food Misses on the Top and Bottom Lines

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Dole Food (NYS: DOLE) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 24 (Q1), Dole Food missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.


Gross margins shrank, operating margins dropped, and net margins improved.

Revenue details
Dole Food reported revenue of $1.63 billion. The six analysts polled by S&P Capital IQ predicted net sales of $1.68 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $1.69 billion.

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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
EPS came in at $0.16. The six earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. GAAP EPS of $0.20 for Q1 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)

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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 10.5%, 180 basis points worse than the prior-year quarter. Operating margin was 2.7%, 220 basis points worse than the prior-year quarter. Net margin was 1%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.81.

Next year's average estimate for revenue is $7.25 billion. The average EPS estimate is $1.29.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 80 members rating the stock outperform, and six members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Dole Food a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dole Food is outperform, with an average price target of $12.21.

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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. 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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