Analyst Downgrades Dole Food Co.’s Stock

A food industry analyst has downgraded Dole Food Co.’s stock over concern about the company’s third-quarter earnings.

Goldman, Sachs & Co. analyst Nomi Ghez took the Westlake Village-based Dole off her company’s recommended list and reduced her earnings estimate for the company’s third quarter to 38 cents a share from 50 cents. Dole earned 38 cents a share in the year-ago quarter.

Ghez said her new estimate is based on information from Dole, the world’s largest producer of fresh fruit and vegetables, that banana prices could be low and its recently acquired European produce unit would incur certain regular business expenses in the third quarter that Dole hadn’t announced previously.

“In this environment, a flat quarter means the stock will tread water for a while,” she said, adding that she still likes the stock.

Dole officials announced second-quarter earnings rose 11% to $70.4 million, or $1.17 a share, up from $63.6 million or $1.05 for the year-earlier quarter.

Revenue rose 6.4%, to $1.11 billion from $1.04 billion.