Chiquita's 4Q Disappoints, BB&T Reiterates Buy Rating

 BB&T Capital Markets has published a research report on Chiquita Brands International (NYSE: CQB) after the company reported losses during its 4Q.

In the report, BB&T writes "Chiquita reported a Q4 loss of $0.39 (ex convertible interest expense) as compared to our and the consensus estimate of a $0.02 and penny loss, respectively. Relative to our estimate, the shortfall was attributable to much higher-than-expected fruit sourcing costs and higher lettuce costs, all related to weather. Banana pricing was better than we had projected. We had anticipated some increase in sourcing costs for the quarter given the supply disruptions in Latin America, but the magnitude of the hit was larger than expected. Still, we did not anticipate a strong Q4 and it has not been our focus—our bullish thesis has been predicated upon our outlook for 2011 and that has not changed." 

BB&T maintains its Buy rating and $18 price target.

Chiquita Brands International closed yesterday at $15.55.