Avocado Price Decline Drags on Earnings, Calavo Growers Q1 Results Mixed, Stock Rises Slightly

LootboxPhobia · 2026-03-12T20:31:41+00:00

Calavo Growers, Inc. delivered mixed first quarter results, with adjusted earnings per share beating expectations at $0.27, but revenue of $122.1 million falling short of the expected $131.1 million. The revenue decline was primarily driven by a 35% drop in avocado selling prices, partially offset by a 17% increase in sales volume. The CEO noted improvements in both fresh produce and prepared foods categories, and stated that the merger with Mission Produce is expected to be completed in 2026.

LootboxPhobia

2026-03-12 20:31:41

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Calavo Growers, Inc. (NASDAQ:CVGW) in San Pablo, California, reported mixed first-quarter results, with earnings exceeding expectations but revenue falling short of analyst estimates.

Following the announcement, the stock rose slightly by 0.8%.

Adjusted earnings per share were $0.27, surpassing the consensus estimate of $0.22 by $0.05. However, revenue was $122.1 million, below the expected $131.1 million, representing a 21% decline from $154.4 million in the same period last year. The revenue shortfall was mainly due to a 35% drop in the average selling price of avocados, partially offset by a 17% increase in avocado box sales.

President and CEO B. John Lindeman stated, “In the first quarter, both our fresh products and prepared foods segments showed sequential improvement. In the fresh products segment, we performed well around seasonal demand, including retail opportunities related to the Super Bowl, with sales significantly higher than last year, while maintaining solid unit margins despite pricing pressures.”

The prepared foods segment performed strongly, with sales increasing 20% to $17.5 million, primarily driven by a 21% increase in pounds sold. Gross margin improved from 10% last year to 12% of net sales.

Total selling, general, and administrative expenses were $16.4 million, with approximately $7.2 million classified as non-recurring costs related to the pending merger with Mission Produce. After excluding these costs, SG&A expenses decreased compared to the previous year.

Calavo ended the quarter with $47.7 million in cash and $79.8 million in available liquidity, with no borrowings under its credit lines. The company expects the merger with Mission Produce to be completed in the third quarter of fiscal 2026, pending regulatory and shareholder approval.

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