NASDAQ$CVGW

Calavo Growers Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered fourth quarter and full year earnings improvement, led by Prepared segment recovery.

Calavo Growers, Inc. reported an 11% decline in total revenue to $243.6 million compared to the prior year. However, the company saw improvements in gross profit and adjusted EBITDA, led by the Prepared segment. The Grown segment experienced a slower than anticipated recovery, moderating overall earnings.

  • Total revenue decreased by 11% year-over-year to $243.6 million.
  • Grown segment revenue declined by 20% year-over-year to $119.1 million.
  • Prepared segment revenue increased by 0.6% year-over-year to $125.0 million.
  • Net loss was $(3.3) million, or $(0.19) per diluted share, compared to a net loss of $(13.0) million, or $(0.73) per diluted share, for the same period last year.

Headline financials

Total Revenue

$244M

Previous: $273M-10.9%
EPS (adj)

$0.03

Previous: -$0.08+137.5%
Capital Expenditures

$2.03M

Previous: $1.8M+12.9%
Free Cash Flow

$6.02M

Previous: -$623K+1066.0%
Net Income

-$3.3M

Previous: -$13M+74.7%
Operating Income

$3.01M

Previous: -$16.7M+118.0%
Gross Profit

$20.4M

Previous: $9.12M+123.7%
Cash & Equivalents

$2.1M

Previous: $1.89M+11.4%
Total Assets

$386M

Previous: $445M-13.4%
Stock-Based Comp

$1.02M

Previous: $1.13M-10.2%

Revenue & EPS history

Calavo Growers · Revenue · Quarterly

$244M

Q4 2022-10.9%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Calavo Growers · $125M total across 1 segment · Q4 2022

  • Prepared
    $125M

Forward guidance

In fiscal 2023, Calavo anticipates a larger Mexican avocado crop, the availability of Jalisco fruit for the full year, and volume growth across its businesses. The company expects avocado pricing to decline with increased supply but aims to maintain a targeted gross profit per carton. Performance in the fresh-cut business is expected to continue improving, with a target gross margin run rate of 10-12% by the end of 2023. Capital expenditures for 2023 are projected to be approximately $18 million.

Tailwinds

  • Mexican avocado crop will be 10-20% larger in 2023, and Jalisco fruit will be available for the full year
  • Mexican avocado volume to grow in conjunction with increased supplies from Mexico and generally expect volume growth across the businesses
  • Input costs for guacamole are expected to be lower due to the supply outlook
  • Gross margin to approximate 25% in the guacamole division
  • Performance in fresh-cut business is expected to continue improving in 2023

Headwinds

  • Avocado pricing is expected to decline with increased supply
  • First quarter to be weaker due to seasonality
  • Q1 Prepared earnings to decline by about a third from the Q4 level due to seasonality
  • We expect around 15-20% of our full year earnings to be generated in Q1
  • 2023 capital expenditures to approximate $18 million

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 Q4 2022

Historical avgQ4 2022

-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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