SANTA PAULA, Calif. – reported mixed first-quarter results, beating earnings expectations while revenue fell short of analyst estimates.
The stock was slightly higher, up 0.8%, following the announcement.
The company posted adjusted earnings per share of $0.27, surpassing the analyst consensus of $0.22 by $0.05. However, revenue of $122.1 million missed the $131.1 million estimate and declined 21% YoY from $154.4 million in the prior-year period. The revenue shortfall was primarily driven by a 35% decline in average avocado selling prices, partially offset by a 17% increase in avocado carton volume.
“Across the first fiscal quarter, we saw sequential improvement in both our Fresh and Prepared segments,” said B. John Lindeman, President and Chief Executive Officer. “In Fresh, we executed well around seasonal demand, including Super Bowl-related retail opportunities, increasing sales volumes substantially over the prior year while maintaining solid per-unit margins in a pressured pricing environment.”
The company’s Prepared segment demonstrated strength with sales increasing 20% to $17.5 million, driven by a 21% increase in pounds sold. Gross profit margin improved to 12% of net sales from 10% in the prior year.
Selling, general and administrative expenses totaled $16.4 million, including approximately $7.2 million of non-recurring expenses primarily related to the pending merger with Mission Produce. Excluding these costs, SG&A expenses declined from the prior year.
Calavo ended the quarter with $47.7 million in cash and $79.8 million in available liquidity, with no borrowings under its credit facility. The company expects the Mission Produce merger to close in the third fiscal quarter of 2026, subject to regulatory and shareholder approvals.
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