Fresh Del Monte Produce Inc.’s stock FDP, -1.11% 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 SPX, +0.65% has gained 9%.