Diamonds and Dogs
9/5/12
Calavo Growers Inc. (CVGW)Calavo Growers needs to sprinkle some miracle-grow on its shares to recoup today's loss, down 11.85% at $22.46. The avocado grower and distributor saw its shares wilt after releasing a poor third quarter earnings report. Calavo reported earnings per share of $0.38 on revenue of $153.2 million, missing analyst estimates of an EPS of $0.53 on revenue of $172.12 million. Calavo CEO, Lee E. Cole said, "Several factors, however, tempered our operating performance in the most recent quarter. The last phase of our recently completed expansion of packing operations in Uruapan, Michoacán, Mexico resulted in that facility being offline for the final two weeks of the third quarter. Additionally, the introduction of Peruvian avocados into the marketplace resulted in temporary pricing volatility as the industry adjusted to this new fruit source."
Office Depot Inc. (ODP)
Office Depot is climbing the corporate ladder today, up 19.57% at $1.93. The office supply company saw its shares bounce higher after positive news was released. Office Depot has seen more growth than its competitor's year over year, up $5 to $10 million. The company announced that they expect earnings before interest and taxes to be between $125 and $135 million. The increase in earnings can be attributed to cost cutting measures that were established by the company. Furthermore, Office Depot said it expected 2012 operational free cash flow of $80 million to $100 million, an increase of $10 million to $30 million from 2011.The positive news has enticed investors to look into the company once again. The company was able to push off of its 52-week low, and saw its trading volume jump 30 million shares today.
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