Why Calavo Growers Stock Was Sliding Today
Shares of Calavo Growers (NASDAQ: CVGW) plunged Friday after the company delivered its fiscal third-quarter earnings report. The avocado grower beat top-line estimates, but missed the mark on the bottom line as supply challenges and price volatility impacted performance.
As of 1:05 p.m. ET, the stock was down by about 14%.
With average prices for avocados soaring over the last year, Calavo, which grows avocados and other fruits and sells prepared foods like guacamole, saw strong growth on the top line. In the fiscal quarter that ended July 31, revenue rose 20% to $342 million, beating estimates of $332.5 million. The average price per pound for avocados increased by 63% from $1.52 in the quarter a year ago to $2.46. However, supply issues weighed on its production, and volume sold actually fell by 19% to 79.5 million.
Source Fool.com
