Calavo Growers Earnings Preview

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Calavo Growers management projections, analysts predict EPS of $0.44 on revenue of $267.07 million. Calavo Growers earnings in the same period a year ago was $0.4 per share. Quarterly sales came in at $281.17 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 10.0% increase for the company. Revenue would be down 5.01% from the same quarter last year. Calavo Growers's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Calavo Growers were trading at $72.86 as of June 04. Over the last 52-week period, shares are up 19.77%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Calavo Growers is scheduled to hold the call at 17:00:00 ET and can be accessed here.