It’s easy to overlook the fact that over 60% of Chiquita Brands banana segment revenue comes from Europe.  As a result, Chiquita is quietly benefiting from a strong Euro.  The upside may actually be as much as $1 per share as the euro now trades at around $1.50, higher than what analysts are conservatively assuming in guidance.  Chiquita management has stated in previous conference calls that they are exposed to euro appreciation despite some hedging.

Analysts currently expect very little growth for 2010 despite three quarters of significant earnings beats by Chiquita.  Current estimates are for $2.51 in 2010, but with euro appreciation trends, eps could easily become something like $3.51.  Despite that, the company trades at only 7x current 2010 analyst expectations and perhaps as low as 5x accounting for a consistently strong euro.  Those looking to bet against the dollar might as well look into healthy U.S. companies with significant euro exposure.  The company has significant debt, but with this kind of cash flow, they are sure to quickly work down debt and interest payments in order to increase profits.