In one of the lesser reviewed notes Thursday, DA Davidson released a report on Calavo Growers, Inc. CVGW. Giving their expectations for Q2 results, the firm sees a bottom-line beat of $0.03 at $0.52 vs. $0.49 a year ago with sales coming in up 7.3 percent year-over-year at $237.8 million. The year-over-year comps were helped this year due to the Super Bowl falling in Q2 against Q1 last year.
One thing DA Davidson mentions is they see relief in avocado pricing coming soon. Although prices have declined 36.9 percent and 31.1 percent for Mexico and California, respectively, last week pricing progressed with Mexico and California avocados up 1.2 percent and 1.3 percent year-over-year. Industry volumes remain high for the quarter, up 25 percent in Mexico and 5 percent in California, which had some difficulties due to the drought.
Shares should continue to see help as the California Avocado Association believes Jalisco approval could add 100-110 million pounds of avocados.
DA Davidson reiterated their Neutral rating and $56 price target. Calavo did not react much in Thursday's session, trading up 1.01 percent at $56.99.
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