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Fresh Del Monte Produce experienced a challenging last quarter, reporting revenues of $1.00 billion, marking a 4.8% year-on-year decline and missing analyst expectations by 6.5%. This downturn reflected a slower period for the company, falling short of both revenue and earnings estimates as projected by analysts.

As the company approaches its upcoming earnings report, analysts anticipate further revenue contraction of 3.6% year-on-year to $1.00 billion for the current quarter. This represents a notable deceleration compared to the 2.2% revenue growth recorded in the same quarter last year, with adjusted earnings expected to reach $0.29 per share.

Despite these projections, the majority of analysts maintaining coverage on Fresh Del Monte Produce have reaffirmed their estimates in the past month, indicating a belief that the company will maintain its current trajectory leading into the earnings announcement. However, it’s worth noting that Fresh Del Monte Produce has missed Wall Street’s revenue estimates on four occasions within the last two years.

In assessing the performance of Fresh Del Monte Produce’s peers within the packaged food segment, recent Q4 earnings results offer insight into potential outcomes. Kellanova achieved a modest top-line growth of 0.3% year-on-year, surpassing analyst estimates by 3.1%, while Mondelez reported a robust 8.7% year-on-year revenue increase, slightly exceeding expectations by 0.2%. Market reactions to these results varied, with Kellanova trading up 2.1% and Mondelez experiencing a 3.1% decline.

Investors in the packaged food sector have exhibited a measured approach leading up to earnings announcements, with average stock performance showing a slight decline of 0.4% over the past month. In contrast, Fresh Del Monte Produce has experienced a more pronounced decline of 4.5% during the same period. Analysts currently hold a price target of $33 for the company, compared to its current share price of $23.92, suggesting a cautious sentiment prevailing in the market.