Dole Food Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of fruit and vegetable producer Dole Food (NYS: DOLE) jumped 12% Friday after the company's quarterly results topped Wall Street expectations.
So what: Dole's fourth-quarter loss narrowed significantly -- adjusted EPS loss of $0.05 versus a loss of $0.41 in the year-ago period -- despite declining revenue, suggesting that profitability is just around the corner. While fresh fruit sales remain weak, management's cost-cutting initiatives continue to steadily improve the bottom line.
Now what: Don't let today's rally keep you from looking into the stock. "Going forward, we continue to be encouraged by consumer acceptance of our new product introductions as well as the strength of our core products," said CEO David DeLorenzo. With the stock still down about 25% from its July highs and currently trading at a forward P/E of eight, there should be plenty of upside left to buy into that optimism.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.