The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Calavo Growers missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margins expanded, operating margins dropped, and net margins shrank.
Calavo Growers chalked up revenue of $117.4 million. The five analysts polled by S&P Capital IQ hoped for revenue of $127.4 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $91.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The four earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.18 for Q1 were 13% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.3%, 80 basis points better than the prior-year quarter. Operating margin was 3.8%, 20 basis points worse than the prior-year quarter. Net margin was 2.3%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.0 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $618.6 million. The average EPS estimate is $1.60.
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 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Calavo Growers a green thumbs-up, and one gives 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 $31.
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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.