Calavo Growers (NASDAQ:CVGW) Posts Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Calavo Growers (NASDAQ:CVGW) announced its earnings results on Wednesday. The company reported $0.25 earnings per share for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.12), Zacks reports. Calavo Growers had a return on equity of 11.73% and a net margin of 2.28%.The firm had revenue of $124.68 million for the quarter, compared to the consensus estimate of $147.95 million.

Here are the key takeaways from Calavo Growers’ conference call:

• Mission has entered a definitive agreement to acquire Calavo for $27 per share ( $14.85 cash + 0.9790 Mission shares), with the deal expected to close by end of August 2026 pending regulatory and shareholder approvals and the combined company to be ~80.3% Mission / 19.7% Calavo; John Pawlowski will lead as CEO and Steve Barnard will be executive chairman.
• Management says the acquisition materially diversifies Mission’s portfolio—adding prepared foods (guacamole, salsas, dips), tomatoes and papayas—while expanding North American and Mexican footprint and creating a more vertically integrated, year‑round supply chain to improve reliability and sourcing optionality.
• Company expects $25 million of annualized cost synergies within 18 months (with meaningful upside) and projects pro forma fiscal 2025 of roughly $2 billion in net sales and $176 million adjusted EBITDA (8.6% margin) with ~2.4x net leverage.
• The plan is forward‑looking and contingent on approvals and successful integration; realization of synergies, revenue upside and execution of cross‑company initiatives carries execution, regulatory and market risks that could affect expected benefits.

Calavo Growers Price Performance

Shares of CVGW opened at $22.58 on Thursday. The business’s 50-day moving average is $21.12 and its two-hundred day moving average is $24.40. The company has a market capitalization of $403.12 million, a P/E ratio of 25.66 and a beta of 0.37. Calavo Growers has a fifty-two week low of $18.40 and a fifty-two week high of $28.72. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.86 and a current ratio of 2.30.

Calavo Growers Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Shareholders of record on Tuesday, January 13th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend is Tuesday, January 13th. Calavo Growers’s dividend payout ratio (DPR) is currently 90.91%.

Wall Street Analyst Weigh In

CVGW has been the topic of a number of research analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Calavo Growers in a report on Monday, December 29th. Wall Street Zen cut Calavo Growers from a “buy” rating to a “hold” rating in a research report on Saturday, December 13th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $40.00.

Institutional Trading of Calavo Growers

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Quarry LP acquired a new position in Calavo Growers in the third quarter valued at approximately $28,000. Tower Research Capital LLC TRC increased its holdings in shares of Calavo Growers by 673.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,775 shares of the company’s stock valued at $74,000 after purchasing an additional 2,416 shares in the last quarter. Van ECK Associates Corp lifted its stake in shares of Calavo Growers by 23.1% in the 3rd quarter. Van ECK Associates Corp now owns 3,648 shares of the company’s stock valued at $94,000 after purchasing an additional 685 shares during the period. BNP Paribas Financial Markets lifted its stake in shares of Calavo Growers by 23.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 7,299 shares of the company’s stock valued at $188,000 after purchasing an additional 1,397 shares during the period. Finally, Lazard Asset Management LLC boosted its holdings in Calavo Growers by 224.8% during the second quarter. Lazard Asset Management LLC now owns 7,468 shares of the company’s stock worth $198,000 after buying an additional 5,169 shares in the last quarter. 81.30% of the stock is owned by institutional investors and hedge funds.

Calavo Growers News Summary

Here are the key news stories impacting Calavo Growers this week:

• Positive Sentiment: Mission Produce agreed to acquire Calavo in a definitive merger announced Jan. 14; the deal provides a clear takeover outcome and likely a shareholder premium, which is the primary driver behind the stock’s upward move. Mission Produce to Acquire Calavo Growers in Merger Deal
• Positive Sentiment: Market reaction: CVGW jumped in after-hours trading on the combined news of the acquisition and the quarter — investors are favoring the certainty of a buyout over the weak quarter. What’s Driving Calavo Growers’ 13% After-Hours Surge?
• Neutral Sentiment: An investor/analyst M&A call transcript is available for further detail on deal terms and integration plans — useful for shareholders assessing regulatory/timing risks. Calavo Growers, Inc. M&A Call Transcript
• Neutral Sentiment: Trading in CVGW was briefly halted pending news, a normal market mechanism that preceded the public deal announcement. Company Press Release / Trading Halt
• Negative Sentiment: Q4 results missed expectations: revenue and EPS came in below consensus (revenue down materially YoY), showing pressure from avocado pricing and volumes — this is the operational weakness that buyers are discounting. Calavo Q4 2025 Earnings: Revenue Falls, EPS Miss
• Negative Sentiment: Key financials show weakening operating cash flow and margin pressure even as cash on the balance sheet remains healthy — these trends explain management’s strategic rationale to pursue a sale. Calavo Q4 and FY2025 Financial Results

About Calavo Growers

Calavo Growers, Inc (NASDAQ:CVGW), founded in 1924 and headquartered in Santa Paula, California, is a global supplier and distributor of fresh avocados and perishable foods. The company partners with growers in key producing regions to source, ripen and package whole avocados for retail, wholesale and foodservice customers. Calavo’s commitment to quality and food safety underpins its position as a trusted link between growers and end-markets.

The company operates two segments: Fresh and Calavo Foods.