NASDAQ$CVGW

Calavo Growers Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Calavo Growers reported increased net income and improved avocado margins in the third quarter of 2023.

Calavo Growers, Inc. reported financial results for the fiscal third quarter ended July 31, 2023. The company saw a decrease in net sales but an increase in gross profit and net income compared to the prior year quarter. Avocado margins improved, and a new credit facility was established.

  • Total net sales decreased by 24% to $259.9 million compared to the prior year quarter.
  • Gross profit increased to $25.0 million, compared to $18.5 million for the prior year quarter.
  • Net income increased to $6.6 million, or $0.37 per diluted share, compared to $1.3 million, or $0.07 per diluted share, for the same period last year.
  • Adjusted EBITDA increased to $13.8 million compared to $8.1 million for the same period last year.

Headline financials

Total Revenue

$260M

Previous: $342M-24.0%
EPS (adj)

$0.41

Previous: $0.16+156.2%
Capital Expenditures

-$10.1M

Previous: -$7.74M-30.4%
Free Cash Flow

-$3.47M

Previous: -$6.44M+46.2%
Net Income

$6.63M

Previous: $1.3M+409.7%
Operating Income

$8.39M

Previous: $1.55M+440.3%
Gross Profit

$25M

Previous: $18.5M+35.2%
Cash & Equivalents

$1.4M

Previous: $2.51M-44.0%
Total Assets

$415M

Previous: $431M-3.6%
Stock-Based Comp

$979K

Previous: $755K+29.7%

Revenue & EPS history

Calavo Growers · Revenue · Quarterly

$260M

Q3 2023-24%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Calavo Growers · $116M total across 1 segment · Q3 2023

  • Prepared
    $116M-14.2%

Forward guidance

The company expects fourth quarter gross profit in Grown to exceed prior year levels and anticipates sequential growth in Prepared gross profit led by improvements in Fresh Cut.

Tailwinds

  • Expect fourth quarter gross profit in Grown to exceed prior year levels
  • Expect fourth quarter gross profit in Prepared to increase sequentially
  • Improvements in Fresh Cut division are expected
  • Focus on avocado margin management
  • Focus on customer service

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 Q3 2023

Historical avgQ3 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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