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OXNARD, Calif. - Mission Produce, Inc. (NASDAQ:AVO) reported fiscal first quarter earnings that beat analyst estimates, but shares fell 3.1% as margins were pressured by higher fruit costs.
The avocado producer posted adjusted earnings per share of $0.10, topping the consensus estimate of $0.03. Revenue surged 29% YoY to $334.2 million, well above analyst expectations of $272 million.
Despite the top and bottom line beats, adjusted EBITDA decreased 8% to $17.7 million compared to the same period last year. The company cited lower per-unit gross margins on avocados sold due to challenges in obtaining Mexican supply to meet customer commitments.
"While the operating environment led to lower per unit avocado margins this year due to higher fruit costs, our diversification across categories and markets helped us deliver solid bottom-line results against a tough year-ago comparison," said CEO Steve Barnard.
Total (EPA:TTEF) avocado volume sold increased 5% YoY, while average selling prices jumped 25%, reflecting industry supply constraints in Mexico and resilient consumer demand. The company’s blueberry segment saw a 70% increase in volume sold, though average selling prices declined 33%.
Mission Produce expects industry avocado volumes in the fiscal second quarter to be consistent with the prior year period. Pricing is projected to be approximately 5% higher YoY.
The company maintained its fiscal 2025 capital expenditure guidance of $50 million to $55 million.
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