Calavo Growers Inc Down 0.85% To $28.46 After Earnings Miss

Tuesday, March 12, 2024 - Calavo Growers Inc (CVGW) reported downside earnings and revenues today.

The consensus among analysts for Calavo Growers Inc was for an earnings per share (EPS) of $0.17. The firm failed to meet those projections, reporting an EPS loss of $0.01 per share, a negative surprise of $0.18 (-106%). Profits fell 120% year-over-year after reporting an EPS of $0.05 in its year-ago quarter. The negative growth rate signals that the Consumer Defensive company isn't performing well amid current economic conditions.

Consensus estimates for Calavo Growers Inc revenue averaged out to $252.7 million, with the business missing on those expectations with reported first-quarter revenue of $127.61. The $252.7 million (100%) negative revenue surprise led to negative 100% growth year-over-year as the firm reported revenue of $132.8 million in its year-ago quarter. The lower earnings growth compared to revenue points to Calavo Growers Inc not being able to improve its profit margin.

The stock is down 0.85% to $28.46 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 45. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Calavo Growers Inc is in the avocado industry and an expanding provider of value-added fresh food. It sells avocados to a group of supermarket chains, wholesalers, food service and other distributors, under brand labels, as well as private labels. The company procures avocados from California, Mexico and other growing regions around the world. Calavo is segmented into three segments namely, Fresh products; Calavo Foods; and RFG. It derives most of its revenue from its Fresh products segment.