Avocado distributor Calavo's Q4 revenue misses estimates, announces merger

Calavo Growers

14/01/2026 21:45

Overview

Avocado processor's Q4 revenue decreased, missing analyst expectations

Net income from continuing operations improved, driven by cost management

Company announces strategic merger with Mission Produce

Outlook

Calavo expects softer first-quarter results due to strong avocado supply and pricing dynamics

Company anticipates higher avocado sales volumes but lower average selling prices in Q1 2026

Calavo aims for volume-driven sales growth and higher gross profit in Prepared segment

Result Drivers

FRESH SEGMENT DECLINE - Q4 Fresh segment sales fell 31% due to lower avocado prices and volumes, impacting overall revenue

PREPARED SEGMENT GROWTH - Prepared segment sales rose 20% in Q4, driven by higher sales volume and new customer acquisitions

COST MANAGEMENT - Lower SG&A expenses contributed to improved net income from continuing operations, despite revenue decline

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$124.70 mln
$153.63 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for Calavo Growers Inc is $37.00, about 66.7% above its January 13 closing price of $22.20

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNXby7S6W

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)