Calavo Growers, Inc. (NASDAQ:CVGW) Earnings Report Highlights

• Earnings per share of $0.05, below the expected $0.25, despite higher revenue.
• Revenue of approximately $170 million, driven by a 19.5% increase in net sales in the Grown segment.
• Challenges in the Prepared segment due to higher fruit costs, impacting overall earnings.

Calavo Growers, Inc. (NASDAQ:CVGW) is a key player in the global avocado market and offers a range of fresh food products. The company is headquartered in Santa Paula, California, and is known for its strong presence in the fresh food sector. Despite its significant market position, CVGW faces competition from other fresh produce companies.

On January 14, 2025, CVGW reported earnings per share of $0.05, which was below the expected $0.25. This shortfall in earnings was despite the company generating revenue of approximately $170 million, surpassing the estimated $154.9 million. The revenue growth was driven by a 19.5% increase in net sales, primarily due to strong performance in the Grown segment, especially with avocados.

The Prepared segment of Calavo Growers faced challenges due to higher fruit costs, which impacted the company's overall earnings. Despite the impressive sales growth, these increased costs contributed to the earnings falling short of estimates. This highlights the challenges the company faces in managing costs while trying to maintain profitability.

Calavo Growers has a price-to-sales ratio of approximately 0.55, indicating that the market values the company's sales at about 55% of its current market price. The enterprise value to sales ratio is around 0.63, suggesting that the company's total valuation, including debt, is slightly higher than its market capitalization relative to sales. These metrics provide insight into how the market perceives the company's sales performance.

The company's financial health is further reflected in its debt-to-equity ratio of approximately 0.30, indicating a relatively low level of debt compared to equity. Additionally, the current ratio of about 2.04 suggests that Calavo Growers has more than twice the current assets compared to its current liabilities, which is a sign of good short-term financial health.