Calavo Growers Publishes Solid 3Q Results

Calavo Growers, Inc. (NASDAQ: CVGW) reported 3Q EPS of $0.41, compared to BB&T's estimate of $0.40. Revenue fell shy of estimates, but gross margins were nearly 230 bps ahead of forecasts and expanded 400 bps over last year.

Operating expenses were in-line with BB&T estimates, as was EBIT at $9.8M. Higher tax rates subtracted $0.01 from earnings.

Calavo's prospects look very promising to BB&T, and management plans to raise pricing on prepared foods over the next few months, which comes along with strong volume growth.

BB&T maintains its Buy rating and $27 price target.

Calavo Growers, Inc. closed yesterday at $19.14.