Calavo(US:CVGW) ZACKSยท2025-01-15 17:51Core Insights - Calavo Growers, Inc. reported fourth-quarter fiscal 2024 results with net sales exceeding estimates but adjusted earnings falling short, indicating a mixed performance [1][3][4]. Financial Performance - Adjusted earnings were 5 cents per share, missing the Zacks Consensus Estimate of 25 cents, but improved from a loss of 2 cents per share in the prior year [3]. - Net sales reached $170.0 million, surpassing the Zacks Consensus Estimate of $166 million, and increased by 19.5% year-over-year [4]. - Gross profit was $16.3 million, up 14% from $14.3 million in the previous year, driven by stronger avocado margins, although gross margin contracted by 40 basis points to 9.6% [5]. - SG&A expenses rose to $13 million from $9.3 million in the prior year, with a 120 basis point increase as a percentage of net sales to 7.7% [6]. Segment Performance - The Grown segment reported net sales of $154.6 million, a 23.4% increase year-over-year, with gross profit rising by 24.1% to $14.3 million [7]. - In the Prepared segment, net sales were $15.3 million, down 9.4% from the previous year, with gross profit decreasing to $2 million due to higher fruit costs [8]. Financial Health - At the end of the quarter, Calavo Growers had cash and cash equivalents of $57 million, liquidity of $108.8 million, and shareholders' equity of $201.8 million, with no outstanding borrowings [9]. Future Outlook - The company anticipates double-digit growth in avocado and guacamole sales volumes for fiscal 2025, supported by strategic initiatives and new customer acquisitions [10]. - In the Grown segment, steady avocado performance is expected, while improved pricing in tomatoes is projected to deliver double-digit growth in gross profit [11]. - The Prepared segment aims to expand its guacamole business with new retail products, expecting double-digit sales volume growth and higher gross margins [12].