HRL - Calavo Growers: Tariffs Are The Latest Headache For This Avocado Firm

2025-03-30 23:27:12 ET

Summary

• Calavo Growers has rebounded to profitability with Q1 2025 earnings, and the full year is looking much better than 2024.
• The company is returning more cash to shareholders via its dividend and new share repurchase program.
• Despite improvements, CVGW faces challenges from increased competition and potential supply chain disruptions due to tariff uncertainties.
• I think it's still fairly early in the turnaround process, and shares aren't cheap enough to be compelling here.

Calavo Growers (CVGW) has a fairly unique business, being the first publicly traded U.S. company that primarily focuses on the distribution and marketing of avocados. Though, Mission Produce ( AVO ) IPO'd in 2020, adding a direct listed competitor in the avocado market....

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