Bullish indicating open at $55-$60, IPO prices at $37
SANTA PAULA, California - Calavo Growers , Inc. (NASDAQ:CVGW) saw its stock price plummet 16.9% after reporting second quarter earnings that fell short of analyst expectations.
The avocado and fresh produce company posted adjusted earnings per share of $0.40, missing the consensus estimate of $0.54. Revenue came in at $190.5 million, also below the $192.75 million analysts were expecting.
Total (EPA:TTEF) net sales increased 3.3% year-over-year to $190.5 million, driven by a 4.7% rise in Fresh segment sales to $174.7 million. However, Prepared segment sales declined 9.9% to $15.9 million.
Gross profit fell 11.9% to $18.1 million compared to the same period last year. The company attributed the decline primarily to lower avocado volumes and weaker performance in its tomato business.
"Our second fiscal quarter performance reflects the strength of our commercial strategy and disciplined operational execution amid continued volatility in the avocado market," said Lee Cole, President and CEO of Calavo Growers. "Revenue grew year-over-year, driven by strong pricing performance."
Cole noted that gross profit per avocado carton improved, but total gross profit declined due to lower volumes in both tomatoes and avocados. The tomato business saw a sharp drop in gross profit from lower average selling prices and volumes.
Looking ahead, Calavo expects strong momentum in its Prepared segment in the second half of the year, supported by volume growth from new and existing customers. The company also anticipates continued strength from the California avocado season.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.