Avocado seller Mission Produce Q3 revenue beats estimates

Overview

• Mission Produce fiscal Q3 revenue rises 10%, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q3 beats consensus, per LSEG data

• Adjusted EBITDA increased 3%, driven by higher avocado production

Outlook

• Company expects Q4 avocado volumes to rise 15% year-over-year

• Mission forecasts Q4 avocado pricing to drop 20-25% from last year

• Company projects 105-110 mln pounds of Peruvian avocado exports in Q4

• Mission anticipates increased blueberry volumes, offset by lower prices

Result Drivers

• PERUVIAN PRODUCTION - Higher Peruvian avocado production due to favorable weather increased supply and sales

• INTERNATIONAL FARMING - Significant growth in avocado production from owned orchards boosted revenue

• MARKETING & DISTRIBUTION - Increased avocado volume sold, despite a decrease in average sales prices, drove revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy"

• Wall Street's median 12-month price target for Mission Produce Inc is $17.00, about 25.7% above its September 5 closing price of $12.63

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNXmZB8B