Perishable Food Stocks Q3 Results: Benchmarking Freshpet (NASDAQ:FRPT)
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Freshpet (NASDAQ:FRPT) and the best and worst performers in the perishable food industry.
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 8.1%.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
Freshpet (NASDAQ:FRPT)
Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $253.4 million, up 26.3% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"Our third quarter results demonstrate the strength and consistency of both net sales and profitability growth we have been striving to deliver. We delivered our 25th consecutive quarter of >25% year on year net sales growth and matched that with a very strong operating performance. This further strengthens our confidence in our ability to meet or exceed our 2027 goals,” commented Billy Cyr, Freshpet’s Chief Executive Officer.
Freshpet achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19.2% since reporting and currently trades at $159.50.
Is now the time to buy Freshpet? Access our full analysis of the earnings results here, it’s free .
Best Q3: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $354.4 million, up 37.4% year on year, outperforming analysts’ expectations by 50.2%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
Mission Produce scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $12.09.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free .
Weakest Q3: 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 $170 million, up 19.5% year on year, exceeding analysts’ expectations by 5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
As expected, the stock is down 3.8% since the results and currently trades at $23.26.
Read our full analysis of Calavo’s results here.
Fresh Del Monte Produce (NYSE:FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.02 billion, up 1.6% year on year. This result topped analysts’ expectations by 3%. Overall, it was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
The stock is up 8.6% since reporting and currently trades at $31.54.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free.
Tyson Foods (NYSE:TSN)
Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.57 billion, up 1.6% year on year. This print beat analysts’ expectations by 0.8%. It was an exceptional quarter as it also recorded a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 4% since reporting and currently trades at $56.48.
Read our full, actionable report on Tyson Foods here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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