Overview

* Calavo Q3 revenue dips to $178.8 mln, misses analysts' expectations, per LSEG data

* Adjusted EPS of $0.57 also below estimates, per LSEG data

* FDA detention hold on avocados led to $4.2 mln in discrete costs

Outlook

* Company projects Prepared segment sales of approximately $115 mln for fiscal 2026

* Company sees momentum in Prepared segment with annualized sales over $100 mln

* Calavo Growers ( CVGW ) believes it is well-positioned for future growth

Result Drivers

* FDA DETENTION HOLD - Temporary hold on avocado imports led to $4.2 mln in costs, impacting Fresh segment gross profit

* FRESH SEGMENT DECLINE - 5% decrease in Fresh segment sales due to lower avocado and tomato volumes

* PREPARED SEGMENT GROWTH - 40% increase in Prepared segment sales driven by higher volumes and operational efficiencies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $178.80 $195.50

Revenue mln mln (3

Analysts

)

Q3 Miss $0.57 $0.59 (3

Adjusted Analysts

EPS )

Q3 Miss $10.20 $11.20

Adjusted mln mln (2

Net Analysts

Income )

Q3 Miss $15.10 $17.40

Adjusted mln mln (2

EBITDA Analysts

)

Q3 Gross $18.20

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 ( CVGW ) is $35.00, about 22.3% above its September 8 closing price of $27.21

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

Press Release:

(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.)