Calavo Earnings: What To Look For From CVGW

Petr Huřťák /
2024/06/09 3:01 am EDT

Fresh produce company Calavo Growers (NASDAQGS:CVGW) will be reporting results today after market close. Here's what you need to know.

Calavo missed analysts' revenue expectations by 49.5% last quarter, reporting revenues of $127.6 million, down 3.9% year on year. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.

Is Calavo a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Calavo's revenue to decline 32.2% year on year to $165.8 million, a further deceleration from the 26.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

Calavo Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Calavo has missed Wall Street's revenue estimates six times over the last two years.

Looking at Calavo's peers in the perishable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mission Produce delivered year-on-year revenue growth of 34.6%, beating analysts' expectations by 31.4%, and Vital Farms reported revenues up 24.1%, topping estimates by 8.1%. Mission Produce traded down 2.5% following the results while Vital Farms was up 21.7%.

Read our full analysis of Mission Produce's results here and Vital Farms's results here.

Inflation fears have put pressure on growth stocks, and while some of the perishable food stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Calavo is down 10.1% during the same time and is heading into earnings with an average analyst price target of $33 (compared to the current share price of $25.5).

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