Calavo Growers (CVGW:NSD) is gearing up to announce its latest earnings data on Tuesday, June 6th. As the market eagerly awaits the release, analysts are predicting earnings of $0.56 per Calavo stock share for the quarter. This update comes after the company fell short of expectations in its previous quarterly report, facing a decline in revenue and a negative net margin.
Challenging Financial Performance:
In the previous quarter, Calavo Growers reported an EPS of ($0.08), missing analysts’ consensus estimates of $0.24 by ($0.32). The company’s revenue for the period stood at $226.20 million, falling short of the consensus estimate of $265.86 million. With a negative net margin of 0.46%, the company faced a decline of 17.5% in quarterly revenue on a year-over-year basis. These figures reflect the company’s struggles amidst challenging market conditions.
Calavo Stock-Market Performance and Outlook:
As Calavo Growers prepares to release its earnings, the stock market has shown some optimism, with a 0.8% increase in the Calavo stock value. The stock opened at $33.09, with a 50-day moving average of $29.91 and a 200-day moving average of $31.21. Despite recent market volatility, the company has maintained a market capitalization of $587.12 million. However, with a PE ratio of -110.30 and a beta of 0.71, Calavo Growers faces the need to deliver solid results to maintain investor confidence.
Dividend Cut:
In addition to its financial challenges, Calavo Growers recently announced a quarterly dividend. However, the dividend payout ratio (DPR) currently stands at -133.33%, indicating a challenging financial position. The dividend, totaling $0.10 per share, was paid on April 6th, representing an annualized dividend yield of 1.21%.
Calavo Stock-Wall Street Analyst Ratings:
Analysts from various equities research firms have shared their insights on Calavo Growers stock. Lake Street Capital lowered their target price on the company from $50.00 to $38.00 but maintained a “buy” rating on the Calavo stock. Stephens also adjusted their target price, lowering it from $39.00 to $35.00 while assigning an “equal weight” rating. These mixed perspectives indicate the uncertainty surrounding the company’s future market performance.
Insider Activity and Institutional Trading:
In recent insider activity, Calavo Growers’ CEO, Lecil E. Cole, acquired a significant number of shares in multiple transactions. These purchases demonstrate the CEO’s confidence in the company’s prospects.
Additionally, institutional investors have made adjustments to their positions in Calavo Growers, with notable stakeholders such as Engineers Gate Manager LP and the Teachers Retirement System of The State of Kentucky making changes to their holdings.
Conclusion:
Calavo Growers is about to release its latest earnings data amid a challenging market landscape. After falling short of expectations in the previous quarter, the company faces the task of regaining investor confidence. Analysts’ predictions and the recent Calavo stock performance suggest a cautious outlook. As Calavo Growers continues to navigate these challenges, investors and industry observers will closely monitor the upcoming earnings report for insights into the company’s financial health and future prospects.
