Here Is What To Expect

Fresh produce company Calavo Growers (NASDAQ:CVGW) will be announcing earnings results tomorrow after market hours. Here’s what to look for.

Calavo missed analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $154.4 million, up 21% year on year. It was a slower quarter for the company, with a miss of analysts’ gross margin estimates and a slight miss of analysts’ EBITDA estimates.

Is Calavo a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Calavo’s revenue to grow 4.5% year on year to $192.8 million, slowing from the 16.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Calavo has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Calavo’s peers in the perishable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mission Produce delivered year-on-year revenue growth of 27.8%, beating analysts’ expectations by 28.4%, and Vital Farms reported revenues up 9.6%, in line with consensus estimates. Mission Produce traded up 4.6% following the results while Vital Farms was down 6.1%.

Read our full analysis of Mission Produce’s results here and Vital Farms’s results here.

Investors in the perishable food segment have had steady hands going into earnings, with share prices flat over the last month. Calavo is up 5.9% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $27.61).

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