Vive le Calavo!

Dont you just love a good guac? Great, me too! So let me introduce you to Calavo.

They sell fresh avocados (as well as other fruits & veggies), prepared foods (guac, etc), and pre-made veggie / fruit trays. Boring, I know, but I personally have a new found soft spot for “boring growth” that pays a dividend. Calavo just had another great quarter and I have been watching them for about a year now.

Third Quarter Highlights Include:
-Revenues, Gross Margin and Net Income Reach New Historic Highs
-Net Income Climbs 47.5 Percent to $12.7 Million from $8.6 Million Last Year
-Diluted EPS Rises to 73 Cents Versus 50 Cents in the Prior Year
-Gross Margin Jumps 34.5 Percent to $32.6 Million from $24.3 Million
-RFG Segment Revenues Advance 15 Percent to $90.7 Million, up from $79.2 Million Last Year

Year-To-Date Highlights Include:

-Net Income Rises 28.4 Percent to $28.8 Million from $22.4 Million in Prior Year
-Diluted EPS Equals $1.65 Versus $1.29 in Prior Year; Year-to-Date EPS Surpasses Fiscal 2015 Full-Year Amounts
-Gross Margin Expands to $80.4 Million, up from $65.1 Million Last Year
-CEO Cole Forecasts Avocado Industry Volume of 2.4 Billion Pounds for Current Year; Anticipates Expansion to 2.7 Billion Pounds in 2017


I tried to calculate out 1 year PEG and here’s what I’ve got for the last 8 quarters worth of EPS:

Q8- (0.07)
Q7- 0.31
Q6- 0.48
Q5- 0.50
Q4- 0.28
Q3- 0.37
Q2- 0.55
Q1- 0.73

(numbers courtesy

for a 1 year PEG of 0.63

This is my first time doing 1 year PEG calculations on my own, so reader beware! Many thanks to whoever posted the google spreadsheet!




I love avocados! Calavo Growers Inc. (CVGW) seems like an interesting investment. Yahoo lists three competitors: Chiquita Banana taken private by a Brazilian outfit in January, Dole which is also private, and Fresh Del Monte Produce Inc. (FDP). Calavo outperforms Del Monte handily:

but eggs did much better

Calavo just had a blowout quarter

Calavo Growers, Inc. Announces Record Fiscal 2016 Third Quarter Results
Business Wire September 7, 2016

Calavo Growers, Inc. (CVGW) today reported that fiscal 2016 third quarter net income climbed more than 47 percent on a 34 percent increase in gross margin to reach their highest quarterly totals in company history. The company, a global avocado industry leader and expanding provider of value-added fresh foods, said that revenue for the quarter also rose over 13 percent to hit a new all-time high.…

Calavo is going on my wish list while I study it some more. Thanks!

Denny Schlesinger


Now look what you’ve done Fuma102. Todays volume (so far today) is the 5th highest positive volume this year. And it has broken out of a 10 week sideways trend.