Fresh produce company Calavo Growers (NASDAQGS:CVGW) will be reporting earnings tomorrow afternoon. Here’s what investors should know.
Last quarter Calavo Growers reported revenues of $259.9 million, down 24% year on year, missing analyst expectations by 8.4%. It was a decent quarter for the company, with an impressive beat of analysts’ gross margin estimates.
Is Calavo Growers buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Calavo Growers’s revenue to grow 11.5% year on year to $271.7 million, improving on the 10.9% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates four times over the last two years.
Looking at Calavo Growers’s peers in the packaged food segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. J. M. Smucker’s revenues decreased 12.1% year on year, missing analyst estimates by 0.3% and Campbell Soup reported revenue decline of 2.2% year on year, missing analyst estimates by 0%. Both stocks (J. M. Smucker and Campbell Soup) traded flat on the results.
Read our full analysis of J. M. Smucker’s results here and Campbell Soup’s results here.
Investors in the packaged food segment have had steady hands going into the earnings, with the stocks up on average 0.9% over the last month. Calavo Growers is up 2.7% during the same time, and is heading into the earnings with analyst price target of $37, compared to share price of $28.3.
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The author has no position in any of the stocks mentioned.