Fresh Del Monte Produce (NYSE:FDP) Shares Gap Down Following Weak Earnings

Fresh Del Monte Produce Inc. (NYSE:FDP) shares gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $30.88, but opened at $28.49. Fresh Del Monte Produce shares last traded at $29.50, with a volume of 164,937 shares.

The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.16). Fresh Del Monte Produce had a return on equity of 5.91% and a net margin of 0.36%. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same period last year, the company earned $0.25 earnings per share. The business’s quarterly revenue was up .5% compared to the same quarter last year.

Fresh Del Monte Produce Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 28th. Investors of record on Monday, March 10th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 4.00%. This is a positive change from Fresh Del Monte Produce’s previous quarterly dividend of $0.25. Fresh Del Monte Produce’s dividend payout ratio is 303.04%.

Fresh Del Monte Produce declared that its Board of Directors has initiated a share repurchase program on Monday, February 24th that allows the company to repurchase $150.00 million in shares. This repurchase authorization allows the company to repurchase up to 10.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Fresh Del Monte Produce

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rhumbline Advisers boosted its stake in Fresh Del Monte Produce by 0.3% during the 4th quarter. Rhumbline Advisers now owns 104,348 shares of the company’s stock valued at $3,465,000 after purchasing an additional 320 shares in the last quarter. Carolina Wealth Advisors LLC boosted its stake in Fresh Del Monte Produce by 2.6% during the 4th quarter. Carolina Wealth Advisors LLC now owns 19,403 shares of the company’s stock valued at $644,000 after purchasing an additional 486 shares in the last quarter. Waterfront Wealth Inc. boosted its stake in Fresh Del Monte Produce by 2.4% during the 4th quarter. Waterfront Wealth Inc. now owns 22,592 shares of the company’s stock valued at $750,000 after purchasing an additional 526 shares in the last quarter. Bank of Montreal Can boosted its stake in Fresh Del Monte Produce by 7.4% during the 4th quarter. Bank of Montreal Can now owns 9,669 shares of the company’s stock valued at $321,000 after purchasing an additional 666 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Fresh Del Monte Produce by 3.7% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,211 shares of the company’s stock valued at $638,000 after purchasing an additional 684 shares in the last quarter. 64.83% of the stock is owned by institutional investors.

Fresh Del Monte Produce Trading Down 2.9 %

The business has a 50 day simple moving average of $31.63 and a 200-day simple moving average of $30.97. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.04 and a current ratio of 2.09. The stock has a market capitalization of $1.44 billion, a P/E ratio of 90.85 and a beta of 0.39.

Fresh Del Monte Produce Company Profile

Fresh Del Monte Produce Inc, through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services.