Calavo(US:CVGW) Financial Modeling Prep·2026-01-15 09:00Core Viewpoint - Calavo Growers, Inc. reported a shortfall in earnings per share and revenue in the fourth quarter, but the company remains a significant player in the fresh produce market with strategic initiatives to strengthen its position [1][2]. Financial Performance - In Q4 2025, Calavo Growers reported earnings per share of $0.25, missing the estimated $0.37, and revenue of approximately $124.7 million, falling short of the anticipated $148 million [2][6]. - Total net sales for the quarter decreased from $170 million in the same period the previous year [2]. - Despite the Q4 challenges, the company achieved a net income from continuing operations of $3.8 million [2]. Annual Performance - For the full year, Calavo Growers experienced a remarkable 191% increase in net income from continuing operations [3]. - Adjusted net income rose by 42%, and adjusted EBITDA increased by 12%, indicating significant growth despite fourth-quarter setbacks [3]. Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 20.28, indicating a premium valuation by investors [4]. - The price-to-sales ratio is about 0.58, and the enterprise value to sales ratio is approximately 0.49, suggesting favorable market valuation of the company's sales [4]. - A low debt-to-equity ratio of about 0.017 reflects a conservative approach to debt, while a current ratio of approximately 2.30 indicates strong liquidity [4]. Strategic Developments - Calavo Growers announced a combination with Mission Produce, Inc. to enhance its capabilities in sourcing, packing, and distributing fresh produce [5]. - Following the earnings miss, the company's stock saw a 1.1% increase, and Citigroup analyst Patrick Cunningham upgraded the stock from Neutral to Buy, raising the price target from $62 to $70, indicating confidence in the company's long-term prospects [5][6].