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Q1 Earnings Highlights: Calavo (NASDAQ:CVGW) Vs The Rest Of The Perishable Food Stocks

CVGW Cover Image

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the perishable food stocks, including Calavo (NASDAQ: CVGW) and its peers.

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 11 perishable food stocks we track reported a slower Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.

In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.

Calavo (NASDAQ: CVGW)

A trailblazer in the avocado industry, Calavo Growers (NASDAQ: CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.

Calavo reported revenues of $190.5 million, up 3.3% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.

“Our second fiscal quarter performance reflects the strength of our commercial strategy and disciplined operational execution amid continued volatility in the avocado market. Revenue grew year-over-year, driven by strong pricing performance,” said Lee Cole, President and Chief Executive Officer of Calavo Growers, Inc.

Calavo Total Revenue

Unsurprisingly, the stock is down 5.2% since reporting and currently trades at $26.21.

Read our full report on Calavo here, it’s free.

Best Q1: Mission Produce (NASDAQ: AVO)

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Mission Produce reported revenues of $380.3 million, up 27.8% year on year, outperforming analysts’ expectations by 28.4%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Mission Produce Total Revenue

Mission Produce achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.4% since reporting. It currently trades at $12.16.

Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Beyond Meat (NASDAQ: BYND)

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.

Beyond Meat reported revenues of $68.73 million, down 9.1% year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Beyond Meat delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 53.2% since the results and currently trades at $3.91.

Read our full analysis of Beyond Meat’s results here.

Cal-Maine (NASDAQ: CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $1.10 billion, up 72.2% year on year. This number surpassed analysts’ expectations by 21.3%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

Cal-Maine delivered the fastest revenue growth among its peers. The stock is up 1.5% since reporting and currently trades at $106.50.

Read our full, actionable report on Cal-Maine here, it’s free.

Dole (NYSE: DOLE)

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Dole reported revenues of $2.10 billion, down 1% year on year. This result topped analysts’ expectations by 2.4%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 2.8% since reporting and currently trades at $14.32.

Read our full, actionable report on Dole here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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