Avocado company Mission Produce (NASDAQ:AVO) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Mission Produce beat analysts’ revenue expectations by 11.7% last quarter, reporting revenues of $357.7 million, up 10.4% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Is Mission Produce a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mission Produce’s revenue to decline 17.1% year on year to $293.9 million, a reversal from the 37.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally 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 25.6% on average.
Looking at Mission Produce’s peers in the perishable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Tyson Foods delivered year-on-year revenue growth of 2.2%, missing analysts’ expectations by 1.1%, and Vital Farms reported revenues up 37.2%, topping estimates by 3.7%. Tyson Foods traded up 5.8% following the results while Vital Farms was also up 10.8%.
Read our full analysis of Tyson Foods’s results here and Vital Farms’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 6.2% on average over the last month. Mission Produce is up 10.7% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $13).
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