Calavo Growers Earnings: Here’s Why Shares are Up Now

Calavo Growers Inc. (NASDAQ:CVGW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.41%.

Calavo Growers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.32% to $0.48 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Rose 27.24% to $194.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Calavo Growers Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.39. It beat the average revenue estimate of $189.17 million.

Quoting Management: Chairman, President and Chief Executive Officer Lee E. Cole stated: “We achieved excellent operating results during the quarter, with revenue growth accelerating both sequentially, as well as year over year. The principal factor—the company’s sharply higher fresh avocado volume, which expanded by nearly 700,000 units, or 21 percent, from the corresponding period last year—is in keeping with our stated goal of increasing market share in this rapidly expanding product category. Avocado consumption continues to grow at an impressive clip—popularity of the fruit is growing rapidly—and Calavo is intent on strengthening its industry leadership position along with it.

Key Stats (on next page)…

Revenue increased 17.17% from $166.34 million in the previous quarter. EPS increased 220% from $0.15 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.41 and has not changed. For the current year, the average estimate has moved down from a profit of $1.16 to a profit of $1.10 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , ,  

More from The Cheat Sheet