Fresh produce company Calavo Growers (NASDAQ: CVGW) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Calavo missed analysts’ revenue expectations by 7% last quarter, reporting revenues of $178.8 million, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a miss of analysts’ gross margin estimates.
Is Calavo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Calavo’s revenue to decline 12.9% year on year to $148 million, a reversal from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 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 consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mission Produce’s revenues decreased 10% year on year, beating analysts’ expectations by 8.5%, and United Natural Foods reported flat revenue, falling short of estimates by 0.9%. Mission Produce’s stock price was unchanged after the resultswhile United Natural Foods was down 3%.
Read our full analysis of Mission Produce’s results here and United Natural Foods’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Calavo is up 3.1% during the same time and is heading into earnings with an average analyst price target of $32.50 (compared to the current share price of $22.18).
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