Avocado company Mission Produce (NASDAQ: AVO) will be reporting results this Monday after market close. Here’s what you need to know.
Mission Produce beat analysts’ revenue expectations by 28.4% last quarter, reporting revenues of $380.3 million, up 27.8% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Mission Produce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mission Produce’s revenue to decline 1.1% year on year to $320.4 million, a reversal from the 23.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mission Produce has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 25.1% on average.
Looking at Mission Produce’s peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 8%, and Fresh Del Monte Produce reported revenues up 3.8%, topping estimates by 2.2%. Vital Farms traded up 21.8% following the results while Fresh Del Monte Produce was also up 4.2%.
Read our full analysis of Vital Farms’s results here and Fresh Del Monte Produce’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 2.4% on average over the last month. Mission Produce is up 2.8% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $12.67).
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