Fresh produce company Calavo Growers (NASDAQ:CVGW) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Calavo beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $179.6 million, down 30.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ EBITDA estimates.

Is Calavo a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Calavo’s revenue to decline 32.9% year on year to $161.9 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Calavo has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Calavo’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mission Produce delivered year-on-year revenue growth of 37.4%, beating analysts’ expectations by 63.5%, and Campbell's reported revenues up 10.1%, falling short of estimates by 1.1%. Mission Produce traded up 17.3% following the results while Campbell's was down 6.1%.

Read our full analysis of Mission Produce’s results here and Campbell’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 9% on average over the last month. Calavo is down 10.5% during the same time and is heading into earnings with an average analyst price target of $34.67 (compared to the current share price of $23.75).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.