NASDAQ$CVGW

Calavo Growers Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Calavo Growers experienced a challenging first quarter due to market conditions in both Grown and Prepared segments, with Grown segment impacted by low avocado prices and Prepared segment affected by volume softness and winter weather.

Calavo Growers reported a decrease in total revenue by 18% year-over-year, with Grown segment revenue declining by 27% and Prepared segment revenue decreasing by 3%. The company experienced a net loss of $(3.1) million, or $(0.17) per diluted share, which is an improvement compared to the previous year's net loss of $(4.0) million, or $(0.23) per diluted share.

  • Total revenue decreased 18% year-over-year to $226.2 million.
  • Grown segment revenue decreased 27% year-over-year to $117.7 million.
  • Prepared segment revenue decreased 3% year-over-year to $108.5 million.
  • Net loss improved to $(3.1) million, or $(0.17) per diluted share, compared to $(4.0) million, or $(0.23) per diluted share, for the same period last year.

Headline financials

Total Revenue

$226M

Previous: $274M-17.5%
EPS (adj)

-$0.08

Previous: -$0.02-300.0%
Capital Expenditures

-$5.19M

Previous: -$2.04M-153.7%
Free Cash Flow

-$8.25M

Previous: -$6.09M-35.6%
Net Income

-$3.07M

Previous: -$4.04M+24.1%
Operating Income

-$3.97M

Previous: -$2.99M-32.9%
Gross Profit

$14.4M

Previous: $13.2M+9.1%
Cash & Equivalents

$1.8M

Previous: $7.83M-77.0%
Total Assets

$396M

Previous: $469M-15.4%
Stock-Based Comp

$1.25M

Previous: $556K+125.4%

Revenue & EPS history

Calavo Growers · Revenue · Quarterly

$226M

Q1 2023-17.5%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Calavo Growers · $109M total across 1 segment · Q1 2023

  • Prepared
    $109M

Forward guidance

Calavo Growers anticipates adjusted EBITDA in the range of $40 to $45 million for fiscal year 2023. Grown Segment fiscal 2023 avocado gross margins per case are expected to be at or near the low end of our $3 to $4 target range. Fiscal 2023 gross margins in the fresh cut division will be at or near the low end of the 10%-12% gross margin range exiting fiscal 2023 as volume softness is expected to persist in the near term. Gross margins in the guacamole division are expected to approximate 20% for fiscal 2023.

Tailwinds

  • Grown segment market conditions started to recover in late January.
  • Avocado margins realized within targeted range of $3 to $4 per case for most of the second quarter.
  • New customer distribution points and volume are still scheduled to launch in the second half.
  • Company remains focused on making changes to the business that will deliver ongoing value.
  • Restructuring certain corporate and administrative functions to upgrade capabilities and to reduce costs.

Headwinds

  • Supply pressure may lead to ongoing volatility in avocado margins.
  • Volume softness in Prepared may persist in the near term.
  • Data indicates volume sales have been down broadly across retail food categories.
  • Operating environment, coupled with first quarter results, has caused company to lower fiscal year margin expectations for both segments.
  • Company plans to reduce fiscal 2023 capital expenditures while navigating near-term challenges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.9%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+17.1%

Q3 2016

Best reaction

-27.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-5.3%-1.7%+10.4%
Q4 2025+13.3%+14.7%+15.5%
Q3 2025-2.6%-0.3%-9.3%
Q2 2025+0.0%+0.3%-5.2%
Q1 2025-1.4%+8.2%+10.1%
Q4 2024-4.5%+4.8%+0.8%
Q3 2024+10.3%+20.3%+14.8%
Q2 2024+6.5%-0.7%-17.2%
Q4 2023-10.9%-8.6%+5.1%
Q3 2023+1.4%-16.9%-21.9%
Q2 2023-1.0%-4.0%-10.2%
Q1 2023-27.0%-25.3%-11.9%
Q4 2022-15.2%-13.4%-7.0%
Q3 2022-16.5%-12.1%-24.5%
Q2 2022+12.6%+17.8%+25.0%
Q1 2022-2.8%-4.1%+6.0%
Q4 2021+3.4%+1.2%+3.7%
Q3 2021-18.5%-26.4%-22.7%
Q2 2021-7.7%-7.3%-17.3%
Q1 2021-3.8%-2.9%-8.2%
Q4 2020-7.9%-3.9%+2.7%
Q3 2020+3.5%+1.3%+9.3%
Q2 2020-4.4%-10.2%-8.0%
Q1 2020-8.7%-1.2%+10.0%
Q4 2019+4.9%+7.1%-7.9%
Q3 2019+11.4%+5.6%+2.9%
Q2 2019+0.6%+4.8%+5.2%
Q1 2019-1.1%-1.7%+7.2%
Q4 2018-11.5%-13.4%-0.5%
Q3 2018+0.1%+3.0%-6.5%
Q2 2018-6.1%-6.3%+9.3%
Q1 2018+2.9%+6.6%+7.5%
Q4 2017+5.0%+4.3%+16.8%
Q3 2017+1.9%+4.1%+10.4%
Q2 2017+7.8%+10.3%-2.6%
Q1 2017+5.8%+8.1%+17.3%
Q4 2016+13.0%+13.7%+1.6%
Q3 2016+17.1%+14.4%+8.0%
Q2 2016+14.7%+15.6%+17.9%
Q1 2016+10.8%
Q4 2015-2.2%
Q3 2015-14.7%
Q2 2015+13.2%
Q1 2015+10.4%
Q4 2014-15.9%
Q3 2014+11.5%
Q2 2014+9.1%
Q1 2014-4.8%
Q4 2013+8.0%
Q3 2013-1.4%
Q2 2013-5.3%
Q1 2013+1.5%
Q4 2012-0.4%
Q3 2012-10.8%
Q2 2012-13.2%
Q1 2011-0.4%
Q1 2012-1.2%
Q2 2011+3.4%
Q4 2011+3.4%
Q4 2009+3.4%
Q4 2010-0.4%
Q3 2011-0.4%
Q3 2010-0.4%
Q2 2010-2.6%
Q1 2010+1.8%

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