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

Shares of Fresh Del Monte Produce Inc. (NYSE:FDP) gapped down prior to trading on Monday following a weaker than expected 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 traded.

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

Fresh Del Monte Produce Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 28th. Stockholders 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 dividend 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 presently 303.04%.

Fresh Del Monte Produce announced that its board has initiated a share buyback plan on Monday, February 24th that allows the company to repurchase $150.00 million in shares. This repurchase authorization allows the company to buy up to 10.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Fresh Del Monte Produce

A number of hedge funds have recently modified their holdings of the business. Rhumbline Advisers lifted its holdings in shares of Fresh Del Monte Produce by 0.3% in the fourth 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 raised its holdings in shares of Fresh Del Monte Produce by 2.6% during the fourth quarter. Carolina Wealth Advisors LLC now owns 19,403 shares of the company’s stock worth $644,000 after acquiring an additional 486 shares in the last quarter. Waterfront Wealth Inc. raised its holdings in shares of Fresh Del Monte Produce by 2.4% during the fourth quarter. Waterfront Wealth Inc. now owns 22,592 shares of the company’s stock worth $750,000 after acquiring an additional 526 shares in the last quarter. Bank of Montreal Can raised its holdings in shares of Fresh Del Monte Produce by 7.4% during the fourth quarter. Bank of Montreal Can now owns 9,669 shares of the company’s stock worth $321,000 after acquiring an additional 666 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Fresh Del Monte Produce by 3.7% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,211 shares of the company’s stock worth $638,000 after acquiring an additional 684 shares in the last quarter. Hedge funds and other institutional investors own 64.83% of the company’s stock.

Fresh Del Monte Produce Trading Down 2.9 %

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.09 and a quick ratio of 1.04. The company has a fifty day moving average of $31.63 and a 200-day moving average of $30.97. The firm has a market capitalization of $1.44 billion, a PE 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.