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Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Herbalife (NYSE:HLF) and its peers.
The consumer staples industry comprises companies engaged in the manufacturing, distribution, and sale of essential, everyday products. These products, also known as "staples," are fundamental to daily living and include packaged food, beverages and alcohol, personal care, and household products. Consumer staples stocks are considered defensive investments because consumers often purchase them regardless of economic conditions. To stand out, companies must have some combination of brand recognition, product quality, and price competitiveness.
The 32 consumer staples stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 12.4% below.
While some consumer staples stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.
Herbalife (NYSE:HLF)
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Herbalife reported revenues of $1.24 billion, down 3.2% year on year. This print fell short of analysts’ expectations by 1%, but it was still a strong quarter for the company with an impressive beat of analysts’ earnings and EBITDA estimates.
Interestingly, the stock is up 10.4% since reporting and currently trades at $7.55.
Is now the time to buy Herbalife? Access our full analysis of the earnings results here, it’s free.
Best Q3: Fresh Del Monte Produce (NYSE:FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.02 billion, up 1.6% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with an impressive beat of analysts’ earnings and gross margin estimates.
The market seems happy with the results as the stock is up 10.5% since reporting. It currently trades at $32.11.
Is now the time to buy Fresh Del Monte Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Conagra (NYSE:CAG)
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.