Calavo Growers, Inc. (NASDAQ: CVGW) Fourth-Quarter Earnings Overview

Font: Financial Modeling Prep  • Jan 15, 2026

• Calavo Growers reported earnings per share of $0.25 and revenue of approximately $124.7 million in the fourth quarter, missing analyst expectations.
• The company experienced a 191% increase in net income from continuing operations for the full year, with adjusted net income rising by 42% and adjusted EBITDA increasing by 12%.
• Strategic partnership with Mission Produce, Inc. aimed at enhancing market position, alongside an upgrade from Citigroup analyst Patrick Cunningham from Neutral to Buy, raising the price target from $62 to $70.

Calavo Growers, Inc. (NASDAQ: CVGW) is a prominent player in the fresh produce industry, specializing in avocados, tomatoes, and papayas, as well as guacamole processing. The company recently reported its fourth-quarter earnings, revealing a shortfall in both earnings per share and revenue compared to analyst expectations. Despite these challenges, Calavo Growers remains a significant entity in the market, with strategic moves aimed at strengthening its position.

In the fourth quarter of 2025, Calavo Growers reported earnings per share of $0.25, missing the estimated $0.37. The company's revenue also fell short, reaching approximately $124.7 million against the anticipated $148 million. This decline in revenue is part of a broader trend, as total net sales for the quarter decreased from $170 million in the same period the previous year. Despite these setbacks, the company managed to achieve a net income from continuing operations of $3.8 million.

Calavo Growers' annual performance, however, tells a different story. The company experienced a remarkable 191% increase in net income from continuing operations for the full year. Adjusted net income rose by 42%, and adjusted EBITDA increased by 12%. These figures highlight the company's ability to generate significant growth over the fiscal year, despite the challenges faced in the fourth quarter.

The company's financial metrics provide further insight into its valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 20.28, investors are willing to pay a premium for each dollar of earnings. The price-to-sales ratio of about 0.58 and an enterprise value to sales ratio of approximately 0.49 suggest that the market values the company's sales favorably. Additionally, the low debt-to-equity ratio of about 0.017 indicates a conservative approach to debt, while a current ratio of approximately 2.30 reflects strong liquidity.

In a strategic move to enhance its market position, Calavo Growers announced a combination with Mission Produce, Inc. This partnership is expected to bolster their capabilities in sourcing, packing, and distributing fresh produce. Despite the recent earnings miss, the company's stock saw a 1.1% increase, and Citigroup analyst Patrick Cunningham upgraded the stock from Neutral to Buy, raising the price target from $62 to $70. This suggests confidence in Calavo Growers' long-term prospects.