Fresh produce company Calavo Growers (NASDAQ: CVGW) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
Calavo missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $190.5 million, up 3.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin 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 8.7% year on year to $195.2 million, slowing from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 8%, and Fresh Del Monte Produce reported revenues up 3.8%, topping estimates by 2.2%. Vital Farms traded up 21.8% following the results while Fresh Del Monte Produce was also up 4.2%.
Read our full analysis of Vital Farms’s results here and Fresh Del Monte Produce’s results here.
Investors in the perishable food segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Calavo is down 2.7% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $27.01).
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