Calavo Growers (NASDAQ: CVGW) reported Q4 EPS of $0.03, $0.30 worse than the analyst estimate of $0.33. Revenue for the quarter came in at $243.6 million versus the consensus estimate of $298 million.

GUIDANCE:

• We estimate the Mexican avocado crop will be 10-20% larger in 2023 and Jalisco fruit will be available for the full year; we expect our Mexican avocado volume to grow in conjunction with increased supplies from Mexico and generally expect volume growth across the businesses
• Avocado pricing is expected to decline with increased supply, but we expect to maintain our targeted gross profit per carton between $3 and $4
• Input costs for guacamole are expected to be lower due to the supply outlook; we expect gross margin to approximate 25% in the guacamole division
• Performance in our fresh-cut business is expected to continue improving in 2023, and we expect to exit 2023 delivering a gross margin run rate of 10-12%; however, we expect the first quarter to be weaker due to seasonality
• We expect around 15-20% of our full year earnings to be generated in Q1 and our Q1 Prepared earnings to decline by about a third from the Q4 level due to seasonality
• We expect 2023 capital expenditures to approximate $18 million

For earnings history and earnings-related data on Calavo Growers (CVGW) click here.