Shares of Fresh Del Monte Produce (NYSE: FDP) plummeted 6.24% in pre-market trading on Wednesday following the release of its first-quarter earnings report that fell short of analyst expectations. The company, known for its fresh fruits and vegetables, reported adjusted earnings per share of $0.63, missing the consensus estimate of $0.68.

Fresh Del Monte's revenue for the quarter came in at $1.10 billion, slightly below the projected $1.11 billion. Despite the sales miss, the company saw improvements in its gross profit, which increased 12% year-over-year to $92.2 million. The gross margin expanded to 8.4% from 7.4% in the same period last year, reflecting stronger execution in the fresh and value-added products segment. However, this growth was offset by weaker performance in the banana segment, where net sales decreased due to lower sales volume and per unit selling prices in Asia.

Chairman and CEO Mohammad Abu-Ghazaleh commented on the results, stating, "We kicked off 2025 with continued momentum, building on the progress we made last year. In the first quarter, demand once again exceeded supply in our fresh and value-added products segment, highlighting the strength of our position in this key segment." Despite the positive outlook from management, investors appear to be focusing on the earnings miss and challenges in the banana segment, leading to the significant pre-market drop in share price.