Fresh Del Monte's stock slides premarket after earnings fall short of estimates

Fresh Del Monte Produce Inc.'s stock (FDP) tumbled premarket Wednesday, after the distributor of fresh fruit and vegetables posted earnings that fell short of estimates. The company posted net income of $8.4 million, or 17 cents a share, down from $33.3 million, or 69 cents a share, in the year-earlier period. Adjusted per-share earnings came to 35 cents, below the 42 cent FactSet consensus. Sales fell to $1.003 billion from $1.054 billion a year ago, also below the FactSet consensus of $1.073 billion. The company said banana segment gross margin widened by 250 basis points and avocadoes turned around with sales up 15%. The company reduced its long-term debt by 26% to $401 million. The stock has fallen 4.5% in the year to date, while the S&P 500 has gained 9%.

-Ciara Linnane

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11-01-23 0630ET

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