Calavo Growers Q1 revenue falls 21% on lower avocado prices

Calavo Growers

12/03/2026 20:55

Overview

Avocado distributor's fiscal Q1 revenue fell 21% yr/yr on lower avocado prices

Adjusted EPS and adjusted net income declined from prior year

Company progressing with previously announced Mission Produce merger, expects closing in fiscal Q3

Outlook

Calavo expects volume growth across both Fresh and Prepared segments in the second fiscal qtr

Company anticipates fresh avocado pricing to remain pressured due to large Mexican crop

Calavo expects merger with Mission Produce to close in third fiscal qtr of 2026

Result Drivers

AVOCADO PRICES - Fresh segment sales dropped due to a 35% decline in average avocado selling prices, partially offset by a 17% increase in carton volume

PREPARED SEGMENT GROWTH - Prepared segment sales rose 20% on a 21% increase in pounds sold, driven by expanded sales to existing customers and new customer wins

NON-RECURRING EXPENSES - SG&A expenses rose due to $7.2 mln in non-recurring items, mainly M&A-related costs and legal settlement

Company press release: ID:nGNX683mlq

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$122.2 mln
$116.35 mln (2 Analysts)
Q1 Adjusted EPS
Beat
$0.27
$0.22 (2 Analysts)
Q1 Adjusted Net Income
Beat
$4.8 mln
$3.80 mln (2 Analysts)
Q1 Net Income
$700,000


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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 $27.00, about 7.3% above its March 11 closing price of $25.16

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 11 three months ago

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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.)