Mission Produce Q1 revenue beats estimates

Overview

• Avocado distributor's fiscal Q1 revenue beat analyst expectations despite lower per-unit prices

• Adjusted EPS and adjusted EBITDA for fiscal Q1 both beat analyst expectations

• Company expects Calavo Growers acquisition to close in fiscal Q3

Outlook

• Company expects avocado industry volumes in Q2 to rise 10-15% versus prior year period

• Mission Produce expects Q2 avocado pricing to be 30-35% lower year-over-year

• Company sees FY 2026 capital expenditure at about $40 mln

Result Drivers

• AVOCADO VOLUME GROWTH - Co said 14% increase in avocado volume sold helped offset lower per-unit prices

• GROSS MARGIN EXPANSION - Co attributed higher gross margin to improved per-unit margins and operational discipline in Marketing & Distribution segment

• BLUEBERRIES SEGMENT PRESSURE - Lower per-acre yield led to higher per-unit fruit production costs and reduced profitability in Blueberries segment

Company press release: ID:nGNX7JxCYb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 27.6% above its March 11 closing price of $13.32

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

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