Earnings Review and Free Research Report: Calavo Growers Reported Better Than Expected Revenue

Research Desk Line-up: Landec Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Calavo Growers, Inc. (NASDAQ: CVGW), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CVGW, following the Company’s disclosure of its financial results on September 06, 2017, for the third quarter fiscal 2017. The Company’s net revenue increased 14.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Farm Products industry. Pro-TD has currently selected Landec Corporation (NASDAQ: LNDC) for due-diligence and potential coverage as the Company reported on September 26, 2017, its financial results for Q1 FY18 which ended on August 27, 2017. Register for a free membership today, and be among the early birds that get access to our report on Landec when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CVGW; also brushing on LNDC. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended July 31, 2017, Calavo Growers’ net revenue increased 14.6% to $301.65 million from $263.15 million in Q3 FY16. The net revenue surpassed analysts’ expectations of $274.16 million.

During Q3 FY17, Calavo Growers’ gross profit decreased 23.8% to $24.85 million from $32.64 million in Q3 FY16. For the reported quarter, the Company’s gross margin decreased 420 basis points to 8.2% of revenue from 12.4% of revenue in Q3 FY16.

For the reported quarter, Calavo Growers’ selling, general, and administrative (SG&A) expenses increased 3.3% to $12.70 million from $12.29 million in Q3 FY16. The increase was primarily due to a change in presentation of broker commission which had previously been accounted for as a reduction of net sales and a one-time legal settlement in the amount of $0.4 million.

During Q3 FY17, Calavo Growers’ operating income decreased 4% to $12.15 million from $20.36 million in Q3 FY16. For the reported quarter, the Company’s operating margin decreased 370 basis points to 4.0% of revenue from 7.7% of revenue in Q3 FY16.

During Q3 FY17, Calavo Growers’ net income decreased 3% to $8.81 million from $12.75 million in Q3 FY16. During Q3 FY17, Calavo Growers’ diluted EPS decreased 31.5% to $0.50 from $0.73 in Q3 FY16. The diluted EPS was in-line with analysts’ expectations of $0.50.

Calavo Growers’ Segment Details

Fresh Products – During Q3 FY17, the Fresh Products segment’s net revenue increased 8.1% to $168.92 million from $156.13 million in Q3 FY16. The increase was due to higher proportion of value-added avocado sales. For the reported quarter, the segment’s gross profit decreased 7.2% to $16.95 million from $18.28 million in Q3 FY16. During Q3 FY17, the segment’s gross margin decreased 170 basis points to 10% of revenue from 11.7% of revenue in Q3 FY16.

Calavo Foods – During Q3 FY17, the Calavo Foods segment’s net revenue increased 24.3% to $20.25 million from $16.29 million in Q3 FY16. For the reported quarter, the segment’s gross profit decreased 81.3% to $1.08 million from $5.80 million in Q3 FY16. During Q3 FY17, the segment’s gross margin decreased 3030 basis points to 5.3% of revenue from 35.6% of revenue in Q3 FY16.

Renaissance Food Group (RFG) – During Q3 FY17, the RFG segment’s net revenue increased 23.9% to $112.48 million from $90.73 million in Q3 FY16. For the reported quarter, the segment’s gross profit decreased 20.2% to $6.83 million from $8.56 million in Q3 FY16. During Q3 FY17, the segment’s gross margin decreased 340 basis points to 6% of revenue from 9.4% of revenue in Q3 FY16.

Balance Sheet

As on July 31, 2017, Calavo Growers’ cash and cash equivalents decreased 35.9% to $8.87 million from $13.84 million in Q4 FY16.

During Q3 FY17, the Company’s accounts receivable, net of allowance increased 15.8% to $81.22 million from $70.10 million in Q4 FY16.

For the reported quarter, the Company’s net inventories increased 2.7% to $32.71 million from $31.85 million in Q4 FY16.

For the reported quarter, the Company’s trade accounts payable increased 36.3% to $30.60 million from $22.45 million in Q4 FY16.

Outlook

For FY17, Calavo Growers expects double-digit revenue growth.

Stock Performance

On Thursday, September 28, 2017, the stock closed the trading session flat at $72.80. A total volume of 58.67 thousand shares have exchanged hands. Calavo Growers’ stock price surged 5.13% in the last three months, 21.03% in the past six months, and 9.77% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 18.57%. The stock is trading at a PE ratio of 35.15 and has a dividend yield of 1.24%. At Thursday’s closing price, the stock’s net capitalization stands at $1.29 billion.

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