Calavo Growers beats Q1 earnings estimates, revenue falls short

Published 12/03/2025, 21:24
Calavo Growers beats Q1 earnings estimates, revenue falls short

SANTA PAULA, Calif. - Calavo Growers , Inc. (NASDAQ:CVGW) reported first-quarter earnings that surpassed analyst expectations, while revenue fell short of estimates. The global avocado industry leader saw its stock rise 1.2% following the announcement.

The company posted adjusted earnings per share of $0.33 for the quarter ended January 31, 2025, beating the analyst consensus of $0.30. Revenue came in at $154.4 million, up 21% YoY but below the $159.85 million analysts had projected.

Calavo’s Fresh segment, which includes avocados and tomatoes, drove the strong performance with sales increasing 23.7% to $139.9 million. This growth was primarily attributed to a 30.5% increase in average price per carton, which offset a 4.6% decline in volume. The Prepared segment’s sales remained essentially flat compared to the prior year.

Gross profit for the quarter rose 46.2% to $15.7 million, with the Fresh segment’s gross profit surging 88.8% to $12.1 million. The company’s cost-cutting efforts resulted in a 23.6% reduction in selling, general, and administrative expenses to $10.3 million.

"Our first quarter results reflect the strongest Q1 adjusted net income performance we’ve delivered since 2019," said Lee Cole, President and CEO of Calavo Growers. "Our strategic focus on margin improvement and operational efficiency is driving tangible results."

The company’s adjusted EBITDA nearly tripled to $9.3 million compared to $3.1 million in the same quarter last year, driven by higher margins in the Fresh segment and operational efficiencies.

Calavo Growers maintained a strong balance sheet with $48.5 million in cash and cash equivalents and $96.7 million in available liquidity at the end of the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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