Calavo Growers Inc (NASDAQ:CVGW) Reports Mixed Q3 FY2025 Results, Beats on EPS but Misses on Revenue

Calavo Growers Inc (NASDAQ:CVGW) reported its third quarter fiscal 2025 earnings, delivering a mixed financial performance that left investors with contrasting signals about the company's current trajectory. The fresh produce distributor managed to surpass earnings expectations while falling notably short on revenue targets, resulting in immediate negative price action following the announcement.

Earnings Performance Versus Estimates

The company's third quarter results revealed a clear divergence between profitability and top-line growth. While Calavo demonstrated operational efficiency in controlling costs, it faced challenges in driving revenue expansion during the period.

• Revenue: Reported $178.8 million, significantly below analyst estimates of $199.4 million
• EPS: Reported non-GAAP earnings of $0.57 per share, exceeding the consensus estimate of $0.54 per share

This earnings beat amidst a revenue miss suggests improved margins or better cost management, though insufficient to overcome the disappointment in sales performance.

Market Reaction and Price Action

The market's response to these mixed results has been predominantly negative, reflecting investor concern over the revenue shortfall. The immediate after-market trading showed a decline of approximately 1.85%, indicating that the revenue miss outweighed the positive earnings surprise in investors' assessment.

The stock's recent performance trends provide additional context:

• Last week: -0.77%
• Last two weeks: -2.34%
• Last month: -1.42%

These figures suggest a pattern of declining investor confidence leading up to and following the earnings release, with the quarterly results accelerating the negative momentum.

Press Release Highlights

The company's announcement emphasized its position as a global leader in avocado and fresh produce distribution, though specific operational details or executive commentary from the press release were not provided in the context materials. Without forward-looking guidance or management outlook statements in the available information, investors are left to interpret the raw financial results without additional corporate context.

Future Expectations and Analyst Outlook

Looking ahead, analysts maintain expectations for the company's performance through the remainder of fiscal 2025. The current estimates suggest:

• Q4 2025 Revenue Estimate: $175.9 million
• Q4 2025 EPS Estimate: $0.38
• Full Year 2025 Revenue Estimate: $726.8 million
• Full Year 2025 EPS Estimate: $1.73

These projections will be closely watched to determine whether the Q3 revenue shortfall represents a temporary setback or a more concerning trend in the company's growth trajectory.

For more detailed earnings information and analyst estimates, readers can review additional data here.

Disclaimer: This article provides financial analysis for informational purposes only and should not be construed as investment advice or a recommendation to buy, sell, or hold any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.