Calavo Growers Earnings: Everything You Must Know Now

Calavo Growers Inc. (NASDAQ:CVGW) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Calavo Growers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 50% to $0.15 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 19.65% to $166.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Calavo Growers Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.38. It beat the average revenue estimate of $162.07 million.

Quoting Management: Chairman, President and Chief Executive Officer Lee E. Cole stated: “The company posted sharply higher second-quarter revenues in its Fresh products, Calavo Foods and RFG business segments—a promising indicator. Fresh avocado sales paced this top-line growth—we packed 1.1 million more units quarter over quarter. Calavo packed and sold 40 percent more fresh avocado units in the fiscal 2013 second quarter over the same period last year, as our company focused on my stated goal to expand fresh avocado category leadership. To put Calavo’s dramatic growth into proper context, the fresh-avocado market on the whole expanded by about 26 percent year to year. That industry figure, of course, includes Calavo’s own expansion; remove our company from that equation and the industry growth rate decreases to about 22 percent.”

Key Stats (on next page)…

Revenue increased 19.21% from $139.5 million in the previous quarter. EPS decreased 16.67% from $0.18 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $1.55 to a profit of $1.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)