(By Balaseshan) Deutsche Bank (DB) lowered its price target on shares of Dole Food Company Inc. (NYSE:DOLE) to $10 from $11, while maintaining its "Hold" rating.
The brokerage said the company's Q1 was hit by weak commodity prices. Dole reported a Q1 miss, with little deleveraging progress and adjusted EPS $0.16 versus DB's $0.37 (consensus $0.31, but most estimates closer to $0.40).
Revenues declined to $1.627 billion from $1.686 billion, while Street predicted $1.68 billion.
Adjusted EBITDA of $71.0 million missed DB's $94.1 million estimate and declined 36%, with weakness in the two commodity segments. Fresh Fruit EBITDA fell 43% and Fresh Vegetables decreased 21%, while Packaged Food segment remains the standout at up 9.9%.
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In addition, Dole Food said its board of directors and management have initiated a comprehensive strategic review of its businesses seeking to enhance shareholder value.
The company said it plans to disclose developments with respect to the progress of the strategic review process at such time, if any, that the company determines further disclosure is appropriate or required.
Dole Food is a producer, marketer and distributor of fresh fruit and fresh vegetables. The company operates in three business segments: fresh fruit, fresh vegetables and packaged foods.
DOLE is trading up 5.50% at $9.20 on Friday.