NASDAQ$CVGW

Calavo Growers Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Calavo Growers' financial performance declined in the second quarter of 2023 due to lower revenue and gross profit.

Calavo Growers reported a 26% decrease in total revenue, a decline in gross profit, and a net loss for the second quarter of 2023. The Grown segment and Prepared segment both experienced revenue declines. However, avocado margins improved compared to the first quarter, and the company is implementing restructuring activities.

  • Total revenue decreased by 26% year-over-year to $244.7 million.
  • Grown segment revenue decreased by 33% year-over-year to $140.7 million.
  • Prepared segment revenue decreased by 14% year-over-year to $104.5 million.
  • Net loss was $(4.0) million, or $(0.23) per diluted share.

Headline financials

Total Revenue

$245M

Previous: $331M-26.2%
EPS (adj)

-$0.01

Previous: $0.33-103.0%
Capital Expenditures

-$8.46M

Previous: -$3.79M-123.4%
Free Cash Flow

-$12.5M

Previous: -$3.98M-213.1%
Net Income

-$4M

Previous: -$191K-1991.6%
Operating Income

-$3.43M

Previous: $4.41M-177.7%
Gross Profit

$15M

Previous: $21.7M-30.8%
Cash & Equivalents

$4.2M

Previous: $2.32M+81.2%
Total Assets

$407M

Previous: $468M-13.1%
Stock-Based Comp

$2.15M

Previous: $812K+164.8%

Revenue & EPS history

Calavo Growers · Revenue · Quarterly

$245M

Q2 2023-26.2%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Calavo Growers · $104M total across 1 segment · Q2 2023

  • Prepared
    $104M

Forward guidance

Calavo Growers expects earnings to improve in the second half of the year compared to the first half, driven by improved performance in both the Grown and Prepared segments.

Tailwinds

  • Avocado margins in the fiscal third quarter through early June have exceeded the average level realized in the fiscal second quarter.
  • Avocado volumes in the fiscal second half are expected to exceed prior year levels.
  • The impact of new volume and other operational initiatives is expected to drive improved performance in fresh cut in the fiscal second half compared to the fiscal first half.
  • The guacamole division is expected to continue to benefit from reasonable fruit costs and operational improvements versus the prior year.
  • Guacamole division is expected to achieve a gross margin of approximately 20% for the full year.

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 Q2 2023

Historical avgQ2 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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