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

Fresh Del Monte Produce Inc. (NYSE:FDP)’s stock price gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. 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 the consensus estimate of $0.42 by ($0.16). Fresh Del Monte Produce had a net margin of 0.36% and a return on equity of 5.91%. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.03 billion. During the same period last year, the company earned $0.25 EPS. The company’s revenue was up .5% compared to the same quarter last year.

Fresh Del Monte Produce Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 28th. Stockholders of record on Monday, March 10th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 3.98%. 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%.

Hedge Funds Weigh In On Fresh Del Monte Produce

Hedge funds have recently added to or reduced their stakes in the stock. Parvin Asset Management LLC acquired a new position in Fresh Del Monte Produce in the fourth quarter valued at about $30,000. Sterling Capital Management LLC grew its stake in Fresh Del Monte Produce by 795.0% in the fourth quarter. Sterling Capital Management LLC now owns 1,083 shares of the company’s stock valued at $36,000 after purchasing an additional 962 shares in the last quarter. McIlrath & Eck LLC bought a new position in Fresh Del Monte Produce in the fourth quarter valued at approximately $48,000. State of Wyoming bought a new position in Fresh Del Monte Produce in the fourth quarter valued at approximately $54,000. Finally, Sherman Asset Management Inc. bought a new position in Fresh Del Monte Produce in the fourth quarter valued at approximately $54,000. Institutional investors and hedge funds own 64.83% of the company’s stock.

Fresh Del Monte Produce Stock Performance

The company has a quick ratio of 1.04, a current ratio of 2.09 and a debt-to-equity ratio of 0.14. The stock has a 50 day simple moving average of $31.71 and a two-hundred day simple moving average of $30.95. The stock has a market capitalization of $1.45 billion, a P/E ratio of 91.40 and a beta of 0.39.

About Fresh Del Monte Produce

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.