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Food & drink

Dole 2Q profit drop expected amid weather challenges and economic headwinds

Dole will announce its second quarter financial results on Thursday, August 17, before the opening bell in New York, with analysts expecting the fresh produce grower, marketer and distributor to report a drop in both profit and revenue year-over-year.

Analysts, on average, expect Dole to post a 15.9% drop in earnings per share, down from $0.44 in the year-ago quarter to $0.37, according to Zacks Consensus Estimate.

Revenue is expected to decline by 12.6% year-over-year from $2.36 billion to $2.06 billion.

As noted by the company with the release of its first quarter results in mid-May, it is monitoring unusual weather events taking place in 2Q, including significant rain in California which has impacted vegetable and berry crops in the state.

Headwinds seen in 1Q including still-high interest rates and unusual currency movements may also have carried over into 2Q.

Dole shares traded lower ahead of its results, down 1.6% at US$13.18 on Wednesday afternoon.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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