SANTA PAULA, Calif. - Calavo Growers , Inc. (NASDAQ:CVGW) saw its shares jump 4.8% after the avocado and produce distributor reported better-than-expected third quarter results, driven by strong performance in its flagship avocado business.
The company posted adjusted earnings of $0.57 per share, surpassing analyst estimates of $0.47 per share. Revenue rose 11.7% year-over-year to $179.6 million, also topping expectations of $178.5 million.
Calavo's Grown segment, which includes avocados, saw sales increase 13.3% to $163.2 million. The company said it achieved strong avocado margins despite temporary supply disruptions from Mexico during the quarter.
"Our third quarter results reflect continued momentum in our flagship avocado business," said Lee Cole, President and CEO of Calavo Growers. "Despite temporary industry supply disruptions from Mexico during the quarter, we generated strong financial results due to our operational flexibility and our resilient team."
The Prepared segment, which includes guacamole products, saw sales dip 2.4% to $16.4 million due to higher fruit input costs. However, volume increased 7% as the company focused on growing the business.
Calavo also announced it is doubling its quarterly dividend to $0.20 per share, citing improvements in financial performance and confidence in future execution.
Looking ahead, Cole said momentum has carried into the fourth quarter and the company expects to deliver "solid financial results" for Q4 and the full fiscal year.
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