Fresh Del Monte Produce (NYSE:FDP) Issues Earnings Results, Beats Estimates By $0.42 EPS

Fresh Del Monte Produce (NYSE:FDP) released its quarterly earnings results on Wednesday. The company reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.42, FiscalAI reports. Fresh Del Monte Produce had a net margin of 1.84% and a return on equity of 6.63%. The firm had revenue of $968.20 million during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter in the prior year, the firm earned $0.26 EPS. The company’s revenue for the quarter was up .6% on a year-over-year basis.

Here are the key takeaways from Fresh Del Monte Produce’s conference call:

• Bankruptcy-approved purchase of select Del Monte Foods assets for $285 million plus assumed liabilities is expected to close before the end of Q1 (subject to HSR/other conditions); management plans a “light-touch” integration to reunify the Del Monte brand and run the acquired food business as a dedicated unit.
• Financial position strengthened — FY2025 adjusted EBITDA $300 million, net cash from operations $245 million, long‑term debt $173 million and adjusted leverage below 1x — which management says supports the pending acquisition and ongoing investments.
• 2026 outlook (excludes Del Monte Foods and the divested Mann Packing) calls for net sales growth of 1%–2%, segment gross margin targets (fresh 12%–14%, bananas 5%–6%, other 12%–13%), SG&A of $210M–$215M and operating cash flow of $220M–$230M, while Q1 may face weather-related distribution headwinds.
• Banana business under pressure from higher production/procurement and distribution costs, adverse weather and crop disease (including Black Sigatoka), plus weaker Asia volumes, which drove banana gross margin down to about 4.8% for the year.
• Board declared a quarterly dividend of $0.30 per share (annualized $1.20, ~3% yield) and the company repurchased 866,000 shares for $30 million in 2025, with $120 million remaining under the repurchase authorization.

Fresh Del Monte Produce Stock Performance

Shares of FDP traded down $0.31 during mid-day trading on Thursday, hitting $42.25. The stock had a trading volume of 30,665 shares, compared to its average volume of 225,776. Fresh Del Monte Produce has a fifty-two week low of $26.50 and a fifty-two week high of $42.91. The company has a quick ratio of 1.07, a current ratio of 2.09 and a debt-to-equity ratio of 0.09. The company’s fifty day simple moving average is $37.75 and its two-hundred day simple moving average is $36.33. The company has a market cap of $2.02 billion, a PE ratio of 25.93 and a beta of 0.30.

Fresh Del Monte Produce Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 27th. Investors of record on Wednesday, March 4th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.20 annualized dividend and a yield of 2.8%. Fresh Del Monte Produce’s dividend payout ratio is 73.62%.

Key Headlines Impacting Fresh Del Monte Produce

Here are the key news stories impacting Fresh Del Monte Produce this week:

• Positive Sentiment: Reported a sizable EPS beat — $0.70 vs. consensus $0.28, reflecting better-than-expected profitability for the quarter. Read More.
• Positive Sentiment: Sales showed modest growth year-over-year (roughly +0.6%) and analysts/coverage highlighted stronger-than-expected sales in some businesses — supportive for near-term fundamentals. Read More.
• Positive Sentiment: Board declared a quarterly dividend of $0.30 (annualized yield ~2.8%), which supports income-oriented holders. Read More.
• Neutral Sentiment: Management released the full quarter slide deck and call transcript (useful for modeling guidance and segment detail). Read More.
• Neutral Sentiment: Market commentary flags a potential major acquisition on the horizon — could be a growth catalyst but also adds deal execution and financing uncertainty. Read More.
• Negative Sentiment: Revenue missed consensus ($968.2M reported vs. ~$1.01B expected), which tempers the EPS beat and raises questions on pricing/volume trends. Read More.
• Negative Sentiment: Management struck a cautious tone on the earnings call about growth outlook, which likely knocked back enthusiasm after the headline beat. Read More.
• Negative Sentiment: Stock initially jumped on the results in some coverage, then reversed; low-than-normal trading volume today suggests limited conviction and possible profit-taking/positioning ahead of additional news (acquisition detail or updated guidance). Read More.

Wall Street Analyst Weigh In

FDP has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Fresh Del Monte Produce in a report on Monday, December 29th. Wall Street Zen downgraded shares of Fresh Del Monte Produce from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has a consensus rating of “Hold”.

Insider Transactions at Fresh Del Monte Produce

In other news, CEO Ghazaleh Mohammad Abu sold 28,558 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $38.42, for a total value of $1,097,198.36. Following the completion of the transaction, the chief executive officer owned 4,962,224 shares in the company, valued at $190,648,646.08. This represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 31.60% of the company’s stock.

Institutional Investors Weigh In On Fresh Del Monte Produce

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its holdings in shares of Fresh Del Monte Produce by 390.8% in the second quarter. EverSource Wealth Advisors LLC now owns 962 shares of the company’s stock valued at $31,000 after purchasing an additional 766 shares during the last quarter. Larson Financial Group LLC grew its holdings in Fresh Del Monte Produce by 1,488.5% in the 3rd quarter. Larson Financial Group LLC now owns 969 shares of the company’s stock valued at $34,000 after buying an additional 908 shares in the last quarter. Geneos Wealth Management Inc. increased its position in Fresh Del Monte Produce by 238.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,065 shares of the company’s stock worth $35,000 after buying an additional 750 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of Fresh Del Monte Produce in the fourth quarter valued at about $61,000. Finally, Sunbelt Securities Inc. acquired a new position in shares of Fresh Del Monte Produce in the third quarter valued at about $77,000. Institutional investors own 64.83% of the company’s stock.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc is a leading producer, marketer and distributor of fresh and fresh-cut fruits and vegetables worldwide. The company offers a wide range of products including bananas, pineapples, melons, grapes and avocados, along with value-added items such as fruit salads, vegetable trays and snack packs under the Del Monte® brand.

Founded in 1989 as a spin-off from Del Monte, Fresh Del Monte has developed a global supply chain that spans production farms, ripening facilities and packaging centers across Latin America, North America, Europe, Asia and Africa.