Calavo Growers Whiffs on Earnings
Calavo Growers (NAS: CVGW) reported earnings on March 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Calavo Growers missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margins expanded, operating margins dropped, and net margins shrank.
Calavo Growers chalked up revenue of $117.4 million. The five analysts polled by S&P Capital IQ hoped for revenue of $127.4 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $91.3 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 $0.18. The four earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.18 for Q1 were 13% 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 10.3%, 80 basis points better than the prior-year quarter. Operating margin was 3.8%, 20 basis points worse than the prior-year quarter. Net margin was 2.3%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.0 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $618.6 million. The average EPS estimate is $1.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members out of 130 rating the stock outperform, and seven 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 gives 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 $31.
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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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