Fresh produce company Calavo Growers (NASDAQ:CVGW) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Calavo beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $170 million, up 19.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and 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 26.6% year on year to $161.6 million, a reversal from the 3.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 Q4 results, giving us a hint as to what we can expect. Mission Produce delivered year-on-year revenue growth of 29.2%, beating analysts’ expectations by 17%, and Vital Farms reported revenues up 22.2%, topping estimates by 3.8%. Vital Farms traded down 2.2% following the results.
Read our full analysis of Mission Produce’s results here and Vital Farms’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 3.9% on average over the last month. Calavo is up 5.4% during the same time and is heading into earnings with an average analyst price target of $33 (compared to the current share price of $23.41).
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