US produce group Calavo Growers saw its share price slide in afternoon trading yesterday (5 June) as second-quarter earnings came in below market expectations.

In the three months to the end of January, net profit amounted to US$2.7m, a 1.1% increase on the prior year. Analysts polled by FactSet were expecting higher earnings of 37 cents per share.

The California-based company has been investing heavily to promote its fresh avocado business. So while sales were up 18.8% to $139.5bn in the period, profit shrank on these costs.

Operating profit in the period fell 2.5% to $4.3m.

The company’s shares fell around 3% to $29.20 in afternoon trading.

Click here to view the full earnings release.