Spotting Winners: Calavo (NASDAQ:CVGW) And Perishable Food Stocks In Q2
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at perishable food stocks, starting with Calavo (NASDAQ:CVGW).
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, perishable food stocks have been resilient with share prices up 9.7% on average since the latest earnings results.
Calavo (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $179.6 million, down 30.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
Management Commentary “Our third quarter results reflect continued momentum in our flagship avocado business,” said Lee Cole, President and Chief Executive Officer of Calavo Growers
Calavo delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 23.6% since reporting and currently trades at $29.71.
Read our full report on Calavo here, it’s free.
Best Q2: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $324 million, up 23.9% year on year, outperforming analysts’ expectations by 40.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.
Mission Produce achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 26.1% since reporting. It currently trades at $13.49.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $640.8 million, down 7% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 7% since the results and currently trades at $69.39.
Read our full analysis of Cal-Maine’s results here.
Dole (NYSE:DOLE)
Cherished for its delicious, world-famous pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Dole reported revenues of $2.12 billion, flat year on year. This print surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also logged a decent beat of analysts’ operating margin and earnings estimates.
The stock is up 9.3% since reporting and currently trades at $15.90.
Read our full, actionable report on Dole here, it’s free.
Fresh Del Monte Produce (NYSE:FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.14 billion, down 3.5% year on year. This number lagged analysts' expectations by 3.5%. Aside from that, it was a mixed quarter as it produced an impressive beat of analysts’ earnings estimates.
Fresh Del Monte Produce had the weakest performance against analyst estimates among its peers. The stock is up 15.7% since reporting and currently trades at $28.48.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free.
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