Dole's Q2 Earnings Upcoming: Here's What Lies Ahead for the Stock

In the last reported quarter, the company delivered a negative earnings surprise of 8.3%. Its earnings beat the Zacks Consensus Estimate by 4.9%, on average, in the trailing four quarters.

Key Factors to Influence DOLE’s Q2 Results

Dole’s quarterly performance is likely to have benefited from strong demand for fresh produce, disciplined pricing actions and improved operational execution. The company is optimizing its vertically integrated supply chain by investing in farming operations, packing facilities, warehouse ripening centers and logistics infrastructure to improve efficiency, product quality and supply reliability.

The company is expanding its internal production and diversifying its sourcing network, particularly in Guatemala, to secure a reliable supply of high-quality bananas and plantains while reducing supply-chain risks. It is also investing in high-growth categories such as cherries and citrus by increasing production capacity and upgrading packing operations to meet rising customer demand. 

Management is also expanding its Diversified Fresh Produce business, which has been a key growth driver and has helped offset volatility in the Fresh Fruit segment. Dole is also streamlining its portfolio through strategic divestitures and pursuing selective acquisitions to sharpen its business focus and expand its geographic footprint. The company continues to invest in value-added infrastructure and operational enhancements while leveraging dynamic pricing strategies to offset rising input, freight and sourcing costs. All the aforesaid endeavors are likely to have bolstered the company’s top-line performance during the quarter under review.

On the flip side, the company continues to face cost and operational challenges that are weighing on its near-term performance. Elevated fruit sourcing costs, due to the supply constraints following weather-related disruptions, continue to pressure margins in the Fresh Fruit segment. The company is also contending with higher fuel, freight, fertilizer and packaging costs stemming from the ongoing conflict in the Middle East, which has increased operating expenses and created a more complex business environment. Such factors are likely to have hurt the company’s profitability during the quarter under review.

What the Zacks Model Unveils for DOLE

Our proven model does not conclusively predict an earnings beat for Dole this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Dole currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Valuation Picture & Price Performance

Dole has a forward 12-month price-to-earnings ratio of 9.73X, lower than the Agriculture - Operations industry’s average of 14.51X. The stock is trading below its median of 10.18X.

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The recent market movements show that DOLE’s shares have lost 12.1% in the past six months against the industry's 6.6% growth.

Stocks With the Favorable Combination

Here are some companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +2.72% and a Zacks Rank of 2. The consensus estimate for EL’s quarterly revenues is pinned at $3.6 billion, which calls for 4.1% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Estee Lauder’s upcoming quarter’s EPS is pegged at 31 cents, which implies a 244.4% rise year over year. EL delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Black Rock Coffee Bar, Inc. BRCB currently has an Earnings ESP of +28.57% and a Zacks Rank of 3. The consensus estimate for BRCB’s quarterly revenues is pinned at $64.2 billion.

The Zacks Consensus Estimate for Black Rock Coffee Bar’s upcoming quarter’s EPS is pegged at seven cents. BRCB delivered a negative earnings surprise of 50% in the last reported quarter.

Coty COTY has an Earnings ESP of +0.03% and a Zacks Rank of 3 at present. The company is expected to register bottom and top-line declines when it reports fourth-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for COTY’s quarterly bottom line has remained unchanged in the past 30 days at a loss of a cent per share. The consensus mark for earnings indicates an improvement of 80% from the figure reported in the year-ago quarter. 

The consensus estimate for quarterly revenues is pegged at $1.2 billion, which indicates a drop of 4.8% from the figure reported in the year-ago quarter. COTY has delivered a negative earnings surprise of 214.1%, on average, in the trailing four quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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