The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Calavo Growers met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share dropped significantly.
Margins dropped across the board.
Calavo Growers logged revenue of $147 million. The five analysts polled by S&P Capital IQ expected sales of $148 million. Sales were 37% higher than the prior-year quarter's $107 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.25. The four earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $0.25 for Q4 were 24% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 9.1%, 420 basis points worse than the prior-year quarter. Operating margin was 4.3%, 250 basis points worse than the prior-year quarter. Net margin was 2.5%, 190 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $133 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $610 million. The average EPS estimate is $1.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members out of 130 rating the stock outperform, and seven members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Calavo Growers a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Calavo Growers is buy, with an average price target of $27.75.
- Add Calavo Growers to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.