SANTA PAULA, Calif. - Calavo Growers , Inc. (NASDAQ:CVGW) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 7.7% in after-hours trading Tuesday.
The avocado and fresh food company posted adjusted earnings per share of $0.05 for the quarter ended October 31, missing the consensus estimate of $0.30. Revenue came in at $170 million, surpassing analyst projections of $162 million.
Net sales increased 19.5% year-over-year to $170 million, driven by a 23.4% rise in the Grown segment to $154.6 million. However, the Prepared segment saw a 9.4% decline in sales to $15.3 million.
Gross profit rose 14.2% to $16.3 million compared to the same period last year. The Grown segment's gross profit jumped 24.1% to $14.3 million, while the Prepared segment's gross profit fell 27.6% to $2 million.
The company reported a net loss from continuing operations of $2.5 million, or $0.14 per diluted share, an improvement from a net loss of $4.7 million, or $0.26 per share, in the prior year quarter.
"We made good progress in 2024 improving our financial performance and executing our strategy," said Lee Cole, President and CEO of Calavo Growers. "Both our top and bottom-line results grew compared to 2023, with net sales increasing approximately 11%, net income from continuing operations increasing approximately 36%, and adjusted EBITDA increasing approximately 11%."
For fiscal year 2025, Calavo anticipates double-digit growth in avocado and guacamole sales volumes, as well as overall revenue. The company expects its initiatives to drive meaningful value creation for shareholders compared to fiscal 2024.
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