Calavo Growers Q1 revenue falls 21% on lower avocado prices
Overview
Avocado distributor's fiscal Q1 revenue fell 21% yr/yr on lower avocado prices
Adjusted EPS and adjusted net income declined from prior year
Company progressing with previously announced Mission Produce merger, expects closing in fiscal Q3
Outlook
Calavo expects volume growth across both Fresh and Prepared segments in the second fiscal qtr
Company anticipates fresh avocado pricing to remain pressured due to large Mexican crop
Calavo expects merger with Mission Produce to close in third fiscal qtr of 2026
Result Drivers
AVOCADO PRICES - Fresh segment sales dropped due to a 35% decline in average avocado selling prices, partially offset by a 17% increase in carton volume
PREPARED SEGMENT GROWTH - Prepared segment sales rose 20% on a 21% increase in pounds sold, driven by expanded sales to existing customers and new customer wins
NON-RECURRING EXPENSES - SG&A expenses rose due to $7.2 mln in non-recurring items, mainly M&A-related costs and legal settlement
Company press release: ID:nGNX683mlq
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $122.2 mln | $116.35 mln (2 Analysts) |
Q1 Adjusted EPS | Beat | $0.27 | $0.22 (2 Analysts) |
Q1 Adjusted Net Income | Beat | $4.8 mln | $3.80 mln (2 Analysts) |
Q1 Net Income |
| $700,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Calavo Growers Inc is $27.00, about 7.3% above its March 11 closing price of $25.16
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 11 three months ago
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