SANTA PAULA, Calif., Aug. 26, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in sourcing, packing and distribution of fresh avocados, tomatoes, papayas and processing of guacamole and other avocado products, today announced that it plans to release financial results for the fiscal third quarter ended July 31, 2025, after the market closes on Tuesday, September 9, 2025. About Calavo Growers, Inc.Calavo Growers, Inc. (Nasdaq: CVGW) is a global leader in the processing and dis ...

Core Viewpoint - Mission Produce, Inc. (AVO) has seen stock momentum due to strategic initiatives aimed at enhancing customer relationships and expanding globally, but its current forward P/E ratio of 28.98X raises concerns about valuation compared to the industry average of 15.28X [1][3][7] Valuation Metrics - The price-to-sales ratio for Mission Produce is 0.69X, which is higher than the industry average of 0.48X, indicating potential investor unease regarding its value proposition at current levels [2] - AVO's P/E ratio of 28.98X is significantly above peers like Archer Daniels Midland Company (12.39X), Corteva Inc. (22.36X), and Adecoagro (11.68X), suggesting a premium valuation [3][19] Stock Performance - Over the past three months, AVO's shares have increased by 17.2%, outperforming the Agricultural-Operations industry's growth of 14.4% and the S&P 500's rally of 14.3% [4][8] - The current share price of $12.19 is 20.1% below its 52-week high of $15.25 and 27.5% above its 52-week low of $9.56, indicating bullish sentiment as it trades above its 50 and 200-day moving averages [10][11] Strategic Initiatives - Mission Produce is effectively managing seasonal supply challenges through a global sourcing network and a vertically integrated structure, enhancing its reputation in the fresh produce market [14][20] - The company is expanding its mango business and improving operations in the U.K., which are yielding strategic benefits and driving customer engagement [15][16] Future Outlook - AVO is positioned to benefit from strong seasonal harvests and favorable consumer demand trends, with expectations of a 10-15% increase in avocado volumes due to a strong Peruvian harvest [16] - Despite muted EPS estimates for the near term, the company's focus on top-line growth and strategic expansion suggests long-term upside potential [21]

Financial Performance - Net sales for Q2 2025 increased to $1,183 million compared to $1,140 million in the prior year, driven by higher net sales in fresh and value-added products and banana segments[18] - Gross profit for Q2 2025 increased to $120 million compared to $113 million in the prior year, driven by higher net sales in fresh and value-added products[19] - Gross margin increased to 102% in Q2 2025, compared to 99% in the prior year[21] - Adjusted EBITDA for Q2 2025 was $954 million compared to $890 million in the prior year[55] Segment Performance - Net sales in the fresh and value-added products segment increased, driven by higher pricing in pineapple and higher sales volume and pricing in fresh-cut fruit[23] - Gross margin in the fresh and value-added products segment increased to 117% compared to 112% in the prior year[23] - Net sales in the banana segment increased, driven by higher selling prices across all regions[29] - Gross margin in the banana segment decreased to 73% compared to 76% in the prior year[28] - Net sales in other products & services decreased slightly due to lower net sales in poultry and meats[31] - Gross margin in other products & services decreased to 104% compared to 107% in the prior year[31] Other Financial Data - The company's income tax rate was 20% compared to 19% in the prior year[34] - Net cash provided by operating activities was $159 million compared to $144 million in the prior year[34] - The company declared a dividend of $030 per share versus $025 per share in the prior year[34]

Core Insights - Mission Produce's expansion into Europe is part of a global strategy focused on diversification and operational efficiency, aiming to reduce reliance on North America and ensure year-round supply [1][7] - The company reported strong first-quarter 2025 results, achieving record revenues and growth in core categories like avocados and blueberries, indicating its capacity to support geographic expansion [2][7] - The European market presents logistical challenges and competitive pressures, with established players and varying consumer preferences, which could complicate Mission Produce's strategy [3][4][5] Financial Performance - Mission Produce's shares increased by 19.5% over the last three months, while the industry saw a growth of 30.1% [6] - The company trades at a forward price-to-earnings ratio of 23.59X, significantly higher than the industry average of 16.71X, indicating a premium valuation [8] - The Zacks Consensus Estimate predicts a year-over-year earnings decline of 20.3% for both fiscal 2025 and 2026, with estimates remaining unchanged over the past week [9][10]

Industry Overview - The Zacks Agriculture – Operations industry is expected to benefit from continuous innovation and rising demand for health-conscious products, particularly alternative proteins [1] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development [3] Growth Drivers - Key growth drivers include acquisitions, joint ventures, expansion strategies, advances in food processing, enhanced grain-handling techniques, and strong demand from emerging markets [1][5] - The U.S. Department of Agriculture projects agricultural exports of $170.5 billion for fiscal 2025, driven by stronger grain and feed exports, particularly corn [4] Challenges - The industry faces headwinds such as volatile commodity prices, rising input costs, trade uncertainties, and escalating operational expenses, which are squeezing margins and disrupting productivity [2][6] - Companies are managing higher selling, general, and administrative (SG&A) expenses due to performance-related compensation and technology investments [7] Market Performance - The Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector with a collective gain of 9.3% over the past year, while underperforming the S&P 500, which gained 11.5% [11] - The industry currently carries a Zacks Industry Rank of 229, placing it in the bottom 7% of over 250 Zacks industries, indicating dull near-term prospects [9][10] Company Highlights - **Mission Produce**: Engaged in sourcing and distributing avocados, mangoes, and blueberries, with a Zacks Consensus Estimate for fiscal 2025 earnings up 18% in the past 30 days [17][18] - **Corteva**: Positioned for above-market growth through innovation and a strong product pipeline, with a Zacks Consensus Estimate for 2025 earnings suggesting a 16.7% increase [21][23] - **Archer Daniels Midland (ADM)**: Focused on nutrition and sustainable materials, with a Zacks Consensus Estimate for 2025 earnings declining by 0.5% [25][26] - **Alico**: Benefits from strong consumption of not-from-concentrate orange juice, with a Zacks Consensus Estimate for current fiscal-year sales suggesting a 20.5% growth [29][30]

Core Viewpoint - Calavo Growers, Inc. reported financial results for the second fiscal quarter and six-month period ended April 30, 2025, showing a mixed performance with increased net sales but decreased gross profit due to lower volumes in key segments [1][8]. Second Quarter Financial Overview - Total net sales for the second quarter were $190.5 million, a 3.3% increase from the prior year quarter [6][13]. - Fresh segment sales were $174.7 million, a 4.7% increase, while prepared segment sales were $15.9 million, a 9.9% decrease [6][13]. - Gross profit was $18.1 million, an 11.9% decrease from the prior year quarter, with fresh segment gross profit declining 13.4% to $14.1 million [6][15]. - Net income from continuing operations was $6.9 million, or $0.38 per diluted share, compared to $6.1 million, or $0.34 per diluted share, in the prior year quarter [6][20]. Six-Month Period Financial Overview - Total net sales for the six-month period were $344.9 million, a 10.6% increase from the prior year period [6][17]. - Fresh segment sales increased 12.4% to $314.4 million, while prepared segment sales decreased 5.4% to $30.5 million [6][17]. - Gross profit for the six-month period was $33.8 million, an 8.0% increase from the prior year period [6][18]. - Net income from continuing operations was $11.3 million, or $0.63 per diluted share, compared to a loss of $0.2 million, or $(0.01) per diluted share, in the prior year period [20]. Segment Performance - Fresh segment growth was supported by significantly higher average avocado pricing, which offset a year-over-year decline in volume [6][12]. - Prepared segment sales decreased primarily due to a decline in sales volume and average selling price [6][12]. - The tomato business experienced a sharp decline in gross profit due to adverse weather and abundant domestic supply, which pressured pricing [10][18]. Management Commentary - The CEO highlighted the strength of the commercial strategy and operational execution amid avocado market volatility, with revenue growth driven by strong pricing performance [8][12]. - Management anticipates strong momentum in the prepared segment during the second half of the year, supported by new customer wins and expanded programs [12][18]. Balance Sheet and Liquidity - As of April 30, 2025, the company had cash and cash equivalents of $60.4 million and total debt of $4.7 million [21].

Company Overview - Calavo Growers, Inc. is a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole [2] - The company was founded in 1924 and has a strong culture of innovation, sustainable practices, and market growth [2] - Calavo products are marketed under the Calavo brand, proprietary sub-brands, and various private label and store brands [2] - The company serves a diverse range of customers including retail grocery, foodservice, club stores, mass merchandisers, food distributors, and wholesalers worldwide [2] - Calavo is headquartered in Santa Paula, California, with facilities throughout the U.S. and Mexico [2] Financial Announcement - Calavo Growers, Inc. plans to release its financial results for the fiscal second quarter ended April 30, 2025, after the market closes on June 9, 2025 [1]

Core Viewpoint - Walmart is preparing to raise prices on many items due to tariffs, despite a temporary reduction in duties on Chinese imports to 30% [1][6]. Group 1: Price Increases and Tariffs - Walmart's CFO indicated that price increases are expected to occur towards the end of May and more in June, with a prediction of more markups than usual in the fiscal second quarter [2][9]. - The company relies heavily on imports, particularly from China, Mexico, Vietnam, India, and Canada, with about one-third of its products made or assembled in the U.S. [4][5]. - Tariffs on various countries, including Costa Rica, Peru, and Colombia, have increased the prices of imported goods such as bananas, avocados, coffee, and roses [5]. Group 2: Inventory Management and Consumer Behavior - Retailers, including Walmart, are managing inventory amid fluctuating tariff levels, with recent changes in duties affecting purchasing strategies [6][8]. - Consumers are making early purchases of big-ticket items due to uncertainty about future price increases, which has also led to hesitance in spending in other areas [7]. Group 3: Market Position and Strategy - Despite the challenges posed by tariffs, Walmart has maintained its sales expectations for the year and believes that higher prices could drive more shoppers to its stores [9][10]. - The company is committed to keeping price gaps with competitors consistent, even if it means sacrificing some profit margins [10][11].

Core Industry Insights - The Zacks Agriculture – Operations industry is benefiting from ongoing innovation and increasing consumer demand for health-focused products, particularly alternative proteins [1][2] - Advancements in food processing technologies, improved grain-handling methods, and expanded storage capacity are supporting industry momentum [2] - The U.S. Department of Agriculture projects agricultural exports of $170.5 billion for fiscal 2025, driven by stronger grain and feed exports [6] Company Highlights Mission Produce - Engaged in sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries, Mission Produce has optimized per-unit margins through effective integration of sales and sourcing operations [19][20] - The Zacks Consensus Estimate for Mission Produce's fiscal 2025 earnings has increased by 19% in the past 30 days, although sales and earnings are expected to decline by 6.6% and 32.4% respectively from the previous year [21] Corteva - Corteva is positioned for above-market growth through its innovative product pipeline and strong market demand for naturally derived products [22] - The Zacks Consensus Estimate for Corteva's 2025 earnings suggests growth of 1.7% and 15.2% respectively from the year-ago period [23] Dole - Dole is expected to benefit from improved logistical efficiencies and a healthier supply-demand balance, which has led to better pricing conditions in Europe [24] - The Zacks Consensus Estimate for Dole's 2025 earnings suggests a growth of 4.7% from the previous year [25] Adecoagro - Adecoagro operates in farming, dairy, sugar, ethanol, and energy production, benefiting from high asset flexibility in a volatile market [26] - The Zacks Consensus Estimate for Adecoagro's 2025 earnings suggests declines of 3.2% and 41.1% respectively from the previous year [27] Industry Challenges - The industry faces challenges such as fluctuating commodity prices, rising input costs, trade uncertainties, and increasing operational expenses, which impact productivity and profitability [3][11] - Companies are managing higher selling, general and administrative expenses due to performance-related compensation and technology investments [12] Market Performance - The Zacks Agriculture – Operations industry has underperformed the broader Zacks Consumer Staples sector and the S&P 500, with a collective decline of 12.2% over the past year [16] - The industry is currently trading at a forward P/E ratio of 13.34X, compared to the S&P 500's 20.05X and the sector's 17.18X [17]