Del Monte Q3 revenue rises 7.2% on Foods acquisition

Overview

• US diversified food company's fiscal Q3 revenue rose 7.2% yr/yr to $1.10 bln

• Adjusted diluted EPS for Q3 was $0.50, up from a loss last year

• Company benefited from Del Monte Foods acquisition and margin expansion despite cost pressures

Outlook

• Del Monte did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• PREPARED FOODS ACQUISITION - Del Monte said the acquisition of Del Monte Foods drove growth in net sales and gross profit, contributing scale and higher margins

• PORTFOLIO DIVERSIFICATION - Co said a more diversified earnings mix improved profitability and provided greater balance across its portfolio

• COST AND CURRENCY PRESSURES - Del Monte cited ongoing cost and foreign currency pressures in its fresh and agricultural operations, partially offset by favorable pricing

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the fishing & farming peer group is "buy"

• Wall Street's median 12-month price target for Del Monte Corporation is $52.00, about 81.6% above its October 27 closing price of $28.63

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)