Dole’s third quarter was met with a positive market reaction, as the company exceeded Wall Street’s revenue expectations despite ongoing cost challenges in its Fresh Fruit segment. Management credited robust performance from its diversified produce operations in Europe and the Americas, as well as the successful launch of new products like the Colada Royale pineapple. CEO Rory Byrne highlighted the benefits of operational investments, especially in European logistics and distribution, noting, “Our diversified fresh produce segments have delivered excellent results, offsetting the anticipated short-term headwinds in our Fresh Foods segment.”
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Dole (DOLE) Q3 CY2025 Highlights:
- Revenue: $2.28 billion vs analyst estimates of $2.16 billion (10.5% year-on-year growth, 5.7% beat)
- Adjusted EPS: $0.16 vs analyst estimates of $0.17 (in line)
- Adjusted EBITDA: $65.07 million vs analyst estimates of $77.93 million (2.9% margin, 16.5% miss)
- EBITDA guidance for the full year is $385 million at the midpoint, below analyst estimates of $393.5 million
- Operating Margin: 1.4%, in line with the same quarter last year
- Market Capitalization: $1.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Dole’s Q3 Earnings Call
- Christopher Barnes (Deutsche Bank) asked about the drivers behind fourth quarter EBITDA guidance and the persistence of cost pressures into 2026. CEO Rory Byrne acknowledged ongoing weather-related sourcing challenges but expressed confidence that market adjustments should eventually rebalance supply and demand.
- Barnes (Deutsche Bank) also inquired about potential tariff relief for tropical produce. Byrne said no immediate changes were expected but remained optimistic that longer-term policy adjustments would benefit the industry.
- Gary Martin (Davy) questioned the rationale for the new $100 million share buyback and its place in capital allocation. Byrne explained the sale of the vegetable division provided clarity and flexibility, allowing Dole to pursue growth projects and return capital to shareholders.
- Martin (Davy) sought details on investment in the Nordics and EMEA. Byrne highlighted ongoing distribution and automation upgrades, with a focus on ensuring these investments deliver lasting benefits across key markets.
- Pooran Sharma (Stephens) asked about annual contracting negotiations amid tight supply. COO Johan Linden indicated that customers recognize global supply shortages and Dole is optimistic about favorable outcomes in negotiations.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace of supply cost normalization in bananas and other key fruits, (2) progress on operational efficiency initiatives in Europe and North America, and (3) the impact of Dole’s capital allocation strategy, including the new share buyback program and potential bolt-on acquisitions. We will also monitor how ongoing product innovation and macroeconomic volatility influence performance.
Dole currently trades at $13.90, up from $13.14 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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