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Investing.com -- Mission Produce, Inc. (NASDAQ:AVO), a leading global avocado company, reported fiscal second quarter earnings that exceeded analyst expectations, sending shares up 3.9% in Friday’s trading.
The company posted adjusted earnings per share of $0.12, beating the consensus estimate of $0.08. Revenue for the quarter surged 28% YoY to $380.3 million, significantly above analyst projections of $269.5 million.
Mission Produce achieved record fiscal second quarter revenue, driven primarily by its Marketing & Distribution segment. Average per-unit avocado selling prices increased 26% while volumes remained flat compared to the same period last year.
"We delivered record second quarter revenue and stronger than expected adjusted EBITDA performance," said CEO Steve Barnard. "Our commercial teams successfully navigated typical seasonal supply challenges by leveraging our industry-leading global source network to satisfy customer commitments."
Despite the revenue growth, net income declined to $3.1 million, or $0.04 per diluted share, compared to $7.0 million, or $0.10 per diluted share, in the year-ago quarter. The company cited lower per-unit margins on avocados sold due to challenges in obtaining Mexican supply.
For the third quarter, Mission Produce expects industry volumes to be approximately 10-15% higher YoY, primarily due to a strong Peruvian harvest outlook. However, pricing is anticipated to be 10-15% lower compared to the $1.84 per pound average in Q3 fiscal 2024.
The company’s shares rose 6.7% following the earnings release, suggesting investors were encouraged by the revenue beat and outlook despite margin pressures.
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