By Kelly Cloonan

Calavo Growers said earnings rose in its fiscal second quarter as higher avocado prices lifted sales.

The avocado distributor on Monday posted a profit of $6.85 million, or 38 cents a share, up from $6.06 million, or 34 cents a share, a year earlier.

Adjusted earnings per share were 40 cents, below estimates of 53 cents a share according to analysts polled by FactSet.

Sales rose 3.3% to $190.5 million.

Calavo's fresh sales rose 4.7% to $174.7 million, driven by higher average avocado pricing that more than offset a decline in volume. Prepared food sales fell 9.9% primarily due to lower volume, the company said.

In the quarter, the company incurred $941,000 in costs from tariffs during the three days in March when taxes were levied on USMCA-compliant Mexican imports. Calavo was unable to pass the added cost on to customers due to the abrupt and unanticipated nature of the tariffs, and believes the expense distorts its quarterly results, it said.

Looking ahead, Calavo expects results in its prepared food segment to rebound beginning in the third quarter amid new customer wins and expanded business with existing accounts.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 09, 2025 16:53 ET (20:53 GMT)

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