2023-05-18 06:48:45 ET
Dole plc ( NYSE: DOLE ) shares rose over 4% before the bell on Thursday after topping Q1 earnings expectations.
For the first quarter, the company notched $0.34 in adjusted earnings per share, nearly doubling the consensus estimate despite a miss on the top line . The company noted that strong banana volumes was partially offset by weakness in pineapple volumes in the Fresh Fruit segment, while “timing differences for the Chilean cherry season, as well as a challenging quarter for berries and grapes” offset strong sales for potatoes and onions in North America.
“We are pleased to have started the year strongly and to have delivered Adjusted EBITDA growth in the first quarter. During the quarter, we announced an agreement to sell our Fresh Vegetables division to Fresh Express,” Executive Chairman Carl McCann commented. “We are continuing to work through the regulatory process for the sale of this business. We believe the Group is well-positioned for growth and continue to target Adjusted EBITDA of $350.0 million for the full year."
Elaborating on the outlook, the company said that “the operating environment so far in 2023 continues to bring with it both new opportunities and new challenges” as supply chain improvements have been balanced by adverse weather impacts. In particular, heavy rains in California leave the company cautious despite overall optimism on the trajectory of the business.
Shares of Dole ( DOLE ) drove 4.02% higher in premarket action on Thursday.
The company also declared a cash dividend for the first quarter of 2023 of $0.08 per share, payable on July 6 .
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Dole stock drives higher on strong profits, upbeat outlook