The 10-second takeaway
For the quarter ended April 30 (Q2), Calavo Growers whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins grew, operating margins expanded, net margins shrank.
Calavo Growers logged revenue of $139.0 million. The six analysts polled by S&P Capital IQ looked for revenue of $157.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $118.7 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 $0.30. The four earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.17 for Q2 were 6.3% 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 10.6%, 270 basis points better than the prior-year quarter. Operating margin was 5.1%, 190 basis points better than the prior-year quarter. Net margin was 1.8%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.2 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $589.6 million. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 138 members out of 146 rating the stock outperform, and eight 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 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 $33.20.
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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.