SANTA PAULA, California – Calavo growers Inc. (NASDAQ:) saw its shares rise 4.8% after the avocado and fruit distributor reported better-than-expected third-quarter results, driven by strong performance in its flagship avocado business.
The company posted adjusted earnings of $0.57 per share, beating analysts’ expectations of $0.47 per share. Revenue rose 11.7% year over year to $179.6 million, also exceeding expectations of $178.5 million.
Calavo’s Grown segment, which includes avocados, saw sales increase 13.3% to $163.2 million. The company said it achieved strong avocado margins despite temporary supply disruptions from Mexico during the quarter.
“Our third quarter results reflect the continued momentum in our flagship avocado business,” said Lee Cole, president and CEO of Calavo Growers. “Despite temporary supply disruptions from Mexico during the quarter, we delivered strong financial results thanks to our operational flexibility and resilient team.”
The Prepared segment, which includes guacamole products, saw revenue decline 2.4% to $16.4 million due to higher fruit input costs. However, volume increased 7% as the company focused on growing the business.
Calavo also announced it will double its quarterly dividend to $0.20 per share, citing improvements in financial performance and confidence in future execution.
Looking ahead, Cole says momentum has continued into the fourth quarter and the company expects “solid financial results” for the fourth quarter and full fiscal year.
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