Why Calavo Growers (CVGW) Stock Is Trading Lower Today
What Happened:
Shares of fresh produce company Calavo Growers (NASDAQGS:CVGW) fell 7.2% in the afternoon session after the company's decision to postpone the release of its Q4'2023 earnings. Preliminary results indicated a concerning 18% decrease in net sales at $972 million for the year ending October 31, 2023, compared to the same period in 2022. This implies Q4'2023 revenue will come in at $241.2 million, significantly below analysts' estimates of $271.7 million. The company is expected to file Form 12b-25, which will allow an extension of fifteen additional calendar days to provide its Form 10-K (annual report). The delayed earnings, in addition to the weak preliminary results, are likely to cause concerns among investors given the increased uncertainty.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Calavo Growers? Access our full analysis report here, it's free.
What is the market telling us:
Calavo Growers's shares are not very volatile than the market average and over the last year have had only 13 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Calavo Growers is down 15% since the beginning of the year, and at $25.18 per share it is trading 34.2% below its 52-week high of $38.26 from July 2023. Investors who bought $1,000 worth of Calavo Growers's shares 5 years ago would now be looking at an investment worth $310.88.
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