Auriga Downgrades Chiquita (CQB) to Hold; Cutting Estimates on Tough Conditions
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Price: $14.49 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga downgraded Chiquita (NYSE: CQB) from Buy to Hold, price target cut from $12 to $9.
Analyst, Gary Albanese, said, "Chiquita Brands reported weaker than expected Q1 earnings as the company was adversely affected by lower market pricing as well as higher costs. Chiquita reported comparable EPS of $0.04 compared to consensus expectations of $0.32. The company also provided cautious Q2 guidance, noting banana supply conditions remains in excess of demand and that salad volume was expected to decline 15% as new customer orders have been delayed. With the lower than expected results, Chiquita is approaching their bank group for an amendment to provide greater flexibility as its financial performance may not meet certain financial covenants. With the weak quarter and reduced expectations, we are lowering our FY12 estimate to $0.06 from $0.91 as market conditions will likely impede the company for much of this year. We do expect Chiquita to improve next year, and are estimating FY13 EPS of $0.90, which is reduced from $1.06. With the reduced estimate as well as the need to obtain bank covenant relief, we are lowering our recommendation on Chiquita to Hold."
For an analyst ratings summary and ratings history on Chiquita click here. For more ratings news on Chiquita click here.
Shares of Chiquita closed at $8.02 yesterday.
Analyst, Gary Albanese, said, "Chiquita Brands reported weaker than expected Q1 earnings as the company was adversely affected by lower market pricing as well as higher costs. Chiquita reported comparable EPS of $0.04 compared to consensus expectations of $0.32. The company also provided cautious Q2 guidance, noting banana supply conditions remains in excess of demand and that salad volume was expected to decline 15% as new customer orders have been delayed. With the lower than expected results, Chiquita is approaching their bank group for an amendment to provide greater flexibility as its financial performance may not meet certain financial covenants. With the weak quarter and reduced expectations, we are lowering our FY12 estimate to $0.06 from $0.91 as market conditions will likely impede the company for much of this year. We do expect Chiquita to improve next year, and are estimating FY13 EPS of $0.90, which is reduced from $1.06. With the reduced estimate as well as the need to obtain bank covenant relief, we are lowering our recommendation on Chiquita to Hold."
For an analyst ratings summary and ratings history on Chiquita click here. For more ratings news on Chiquita click here.
Shares of Chiquita closed at $8.02 yesterday.
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