SANTA PAULA, Calif. - Calavo Growers , Inc. (NASDAQ:CVGW), a global leader in the avocado industry, reported a decline in its fiscal first quarter financial performance, missing analyst expectations for both earnings and revenue. The company's stock price declined by 1.74% following the earnings release,
The company announced a net loss from continuing operations of $2.6 million, or -$0.15 per diluted share, compared to a net loss of $0.7 million, or -$0.04 per diluted share, for the same period last year. Adjusted net loss was reported at $0.2 million, or -$0.01 per diluted share, falling short of the analyst estimate of $0.19 per share.
Revenue for the quarter was $127.6 million, a decrease of 3.9% from the prior year quarter and significantly below the consensus estimate of $246.88 million. The Grown segment saw a 4.0% decrease in net sales to $113.0 million, while the Prepared segment's net sales decreased by 2.9% to $14.6 million. Despite a 20% increase in the average selling price of avocados, the volume declined by 18%, as the company prioritized margin over volume in its sourcing and sales decisions.
President and CEO Lee Cole commented on the quarter, stating, "Our first quarter results were affected by temporary market dynamics within our avocado business, particularly for smaller sized fruit, and we are pleased to report that conditions have improved in February and March." Cole also expressed optimism for the second quarter and fiscal 2024, anticipating a solid rebound in earnings due to improved avocado margins, better tomato performance, and the ramp-up of the California avocado season.
Management also highlighted progress toward completing the sale of the fresh cut business and expects to realize cost savings from the divestiture and other efficiency measures.
Calavo Growers ended the quarter with $47.0 million of net debt and had approximately $33.6 million of available liquidity as of January 31, 2024. The company declared a quarterly cash dividend of $0.10 per share to be paid on April 29, 2024, to shareholders of record on April 1, 2024.
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