Mission Produce (NASDAQ:AVO – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.06, FiscalAI reports. The company had revenue of $450.00 million during the quarter, compared to the consensus estimate of $367.57 million. Mission Produce had a net margin of 0.12% and a return on equity of 6.35%. Mission Produce’s quarterly revenue was up 25.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.26 EPS.
Here are the key takeaways from Mission Produce’s conference call:
- Adjusted EBITDA exceeded guidance at $32.4 million, supported by stronger international farming results, solid marketing and distribution performance, and early contributions from the Calavo acquisition.
- Management raised its estimate for annualized Calavo-related synergies to more than $30 million, up from at least $25 million, citing higher-than-expected SG&A savings and network efficiencies. Synergies are expected to begin contributing in the fourth quarter and build through fiscal 2027.
- Avocado demand remained resilient despite higher prices: U.S. retail volume rose approximately 9% year over year, while consumption exceeded 10 pounds per capita and household penetration increased. Mission also estimated that its legacy U.S. retail market share rose about 60 basis points year to date.
- Management expects a significant fourth-quarter seasonal increase, reaffirming full-year second-half adjusted EBITDA guidance of $84 million to $88 million and forecasting $52 million to $55 million in Q4. Key drivers include increased Peruvian avocado shipments, blueberry seasonality, a full quarter of Calavo, improving avocado margins, and initial synergies.
- The acquisition increased financial and operating pressure in the quarter: Mission reported a $6.5 million GAAP net loss, approximately $400 million of long-term debt, higher interest expense, and $25.9 million of cash used in operations through nine months. Additional integration costs are expected as facility, technology, and organizational changes continue.
Mission Produce Price Performance
AVO stock opened at $13.42 on Thursday. The stock’s fifty day simple moving average is $12.94 and its 200-day simple moving average is $12.89. Mission Produce has a 52-week low of $10.07 and a 52-week high of $15.53. The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of 447.48 and a beta of 0.48. The company has a quick ratio of 1.12, a current ratio of 1.91 and a debt-to-equity ratio of 0.22.
Mission Produce News Roundup
- Positive Sentiment: Fiscal Q3 revenue rose 25.8% year over year to $450 million, substantially exceeding the roughly $367.6 million analyst consensus. Adjusted earnings of $0.18 per share also topped expectations of $0.12. Mission Produce Fiscal 2026 Third Quarter Results
- Positive Sentiment: Management raised its annualized Calavo synergy target to more than $30 million, reinforcing the potential for cost savings and distribution benefits from the acquisition. Calavo’s contribution and stronger avocado volumes were key drivers of the quarter. AVO Q3 Earnings Call Focuses on Calavo Synergies and Q4 Ramp
- Positive Sentiment: Mission Produce forecasts fourth-quarter adjusted EBITDA of $52 million to $55 million. Peru avocado supplies, blueberry growth and a full-quarter contribution from Calavo are expected to support a stronger fiscal Q4, while second-half guidance was reaffirmed. Mission Produce Forecasts Q4 Adjusted EBITDA
- Negative Sentiment: Despite the revenue and earnings beat, quarterly EPS declined from $0.26 a year earlier to $0.18. Higher avocado volumes were accompanied by lower pricing, which pressured margins and remains a risk to profitability.
Analyst Ratings Changes
Several research firms have recently commented on AVO. Wall Street Zen cut Mission Produce from a “hold” rating to a “sell” rating in a report on Saturday, June 13th. Weiss Ratings reissued a “hold (c-)” rating on shares of Mission Produce in a report on Friday, September 4th. Finally, UBS Group set a $16.00 target price on shares of Mission Produce in a research report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Mission Produce presently has a consensus rating of “Moderate Buy” and an average price target of $16.50.
Get Our Latest Stock Report on Mission Produce
Mission Produce declared that its Board of Directors has authorized a share repurchase program on Monday, June 8th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to buy up to 13.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.
Insider Activity
In related news, major shareholder Holdings Venture Globalharvest acquired 687,222 shares of the business’s stock in a transaction dated Wednesday, July 8th. The shares were acquired at an average cost of $13.42 per share, for a total transaction of $9,222,519.24. Following the acquisition, the insider directly owned 12,370,439 shares in the company, valued at approximately $166,011,291.38. The trade was a 5.88% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Jay Pack bought 40,000 shares of the stock in a transaction that occurred on Tuesday, June 30th. The stock was bought at an average price of $12.10 per share, with a total value of $484,000.00. Following the completion of the acquisition, the director owned 579,965 shares of the company’s stock, valued at $7,017,576.50. This trade represents a 7.41% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 3,314,711 shares of company stock valued at $42,045,468 in the last 90 days. 30.85% of the stock is currently owned by insiders.
Institutional Trading of Mission Produce
A number of institutional investors have recently modified their holdings of AVO. Quarry LP purchased a new stake in shares of Mission Produce during the third quarter valued at approximately $29,000. Tower Research Capital LLC TRC increased its position in shares of Mission Produce by 211.8% during the second quarter. Tower Research Capital LLC TRC now owns 4,649 shares of the company’s stock worth $54,000 after acquiring an additional 3,158 shares during the last quarter. Public Employees Retirement System of Ohio lifted its stake in shares of Mission Produce by 466.0% in the fourth quarter. Public Employees Retirement System of Ohio now owns 7,035 shares of the company’s stock worth $82,000 after acquiring an additional 5,792 shares in the last quarter. Virtus Advisers LLC acquired a new position in shares of Mission Produce in the third quarter worth about $95,000. Finally, Virtu Financial LLC purchased a new position in Mission Produce in the fourth quarter valued at about $133,000. Hedge funds and other institutional investors own 63.57% of the company’s stock.
About Mission Produce
Mission Produce, Inc is a leading global supplier, packer and distributor of fresh avocados, serving retail, foodservice and industrial customers. The company manages a vertically integrated supply chain that spans sourcing, post-harvest handling, packing and ripening. Through proprietary ripening technologies and cold-chain logistics, Mission Produce delivers consistent quality and extended shelf life for its avocado offerings.
Founded in 1983 and headquartered in Oxnard, California, Mission Produce grew from a regional packing operation into a publicly traded company listed on the Nasdaq under the ticker AVO.
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