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

Calavo Growers (NASDAQ:CVGW) issued its quarterly earnings data on Wednesday. The company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.12), Zacks reports. Calavo Growers had a net margin of 3.05% and a return on equity of 13.48%. The company had revenue of $124.68 million during the quarter, compared to analysts’ expectations 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 Trading Up 13.5%

Shares of CVGW stock opened at $25.62 on Friday. Calavo Growers has a fifty-two week low of $18.40 and a fifty-two week high of $28.72. The company has a 50 day moving average price of $21.19 and a 200 day moving average price of $24.41. The stock has a market capitalization of $457.32 million, a P/E ratio of 23.29 and a beta of 0.37. 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 Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 30th. Investors of record on Tuesday, January 13th will be issued a $0.20 dividend. The ex-dividend date is Tuesday, January 13th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.1%. Calavo Growers’s payout ratio is 90.91%.

Hedge Funds Weigh In On Calavo Growers

Several institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Calavo Growers by 4.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,985 shares of the company’s stock valued at $240,000 after purchasing an additional 390 shares during the period. Engineers Gate Manager LP boosted its stake in shares of Calavo Growers by 1.1% in the 2nd quarter. Engineers Gate Manager LP now owns 38,354 shares of the company’s stock valued at $1,020,000 after buying an additional 422 shares during the period. Van ECK Associates Corp grew its position in shares of Calavo Growers by 23.1% during the third quarter. Van ECK Associates Corp now owns 3,648 shares of the company’s stock worth $94,000 after buying an additional 685 shares in the last quarter. Quarry LP purchased a new stake in shares of Calavo Growers during the third quarter worth approximately $28,000. Finally, Franklin Resources Inc. increased its stake in shares of Calavo Growers by 6.6% during the third quarter. Franklin Resources Inc. now owns 21,629 shares of the company’s stock worth $557,000 after buying an additional 1,347 shares during the period. Institutional investors and hedge funds own 81.30% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on CVGW shares. Wall Street Zen downgraded shares of Calavo Growers from a “buy” rating to a “hold” rating in a research note on Saturday, December 13th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Calavo Growers in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $40.00.

More Calavo Growers News

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

• Positive Sentiment: Acquisition announced — Mission Produce agreed to buy Calavo, creating a strategic consolidation in the North American avocado/fresh-produce market; the deal includes $14.85 cash + 0.9790 Mission shares per CVGW share and has been reported as ~ $430M, which supplies a clear takeover premium supportive of CVGW’s stock. Mission Produce to Acquire Calavo Growers in Merger Deal
• Positive Sentiment: Market reaction — Reports show a strong after-hours rally tied to the deal announcement and fiscal update, reflecting investor demand for the takeover premium and M&A-driven re-rating. What’s Driving Calavo Growers’ 13% After-Hours Surge?
• Positive Sentiment: Full-year highlights the company released show growth in net income and adjusted EBITDA year-over-year, which M&A buyers may have viewed as accretive to combined operations. Calavo Growers, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: M&A call transcript is available for investors wanting details on rationale, timing and integration plans — useful for assessing deal certainty and timeline. Calavo Growers, Inc. (CVGW) M&A Call Transcript
• Neutral Sentiment: Trading halt — The stock was temporarily halted for “news pending,” a standard market response to material announcements; this increased volatility and concentrated trading once the halt lifted.
• Negative Sentiment: Q4 financials missed consensus — Revenue and EPS for the quarter came in below expectations (revenue down ~26% YoY; EPS and operating cash flow materially weaker), which under ordinary circumstances pressures the share price and highlights margin/volume headwinds in the core avocado business. Calavo Growers (CVGW) Releases Q4 2025 Earnings
• Negative Sentiment: Shareholder litigation risk — Two investor-rights firms announced investigations into whether the sale terms are fair to Calavo shareholders; potential lawsuits or proxy disputes could introduce delays, transaction costs or renegotiation risk. M&A Class Action Firm Announces Investigation of Calavo Growers Halper Sadeh LLC Investigating Sale of Calavo Growers

Calavo Growers Company Profile

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.