Calavo Growers Increases Sales but Misses Estimates on Earnings
Calavo Growers (NAS: CVGW) reported earnings on June 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q2), Calavo Growers whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins grew, operating margins expanded, net margins shrank.
Calavo Growers logged revenue of $139.0 million. The six analysts polled by S&P Capital IQ looked for revenue of $157.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $118.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The four earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.17 for Q2 were 6.3% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.6%, 270 basis points better than the prior-year quarter. Operating margin was 5.1%, 190 basis points better than the prior-year quarter. Net margin was 1.8%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.2 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $589.6 million. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 138 members out of 146 rating the stock outperform, and eight members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Calavo Growers a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Calavo Growers is buy, with an average price target of $33.20.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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