Avocado company Mission Produce (NASDAQ:AVO) will be reporting results tomorrow afternoon. Here’s what investors should know.
Mission Produce beat analysts’ revenue expectations by 40.3% last quarter, reporting revenues of $324 million, up 23.9% year on year. It was an incredible quarter for the company, with an impressive 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.
This quarter, analysts are expecting Mission Produce’s revenue to decline 15.9% year on year to $216.8 million, a reversal from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 missed Wall Street’s revenue estimates twice over the last two years.
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. Freshpet delivered year-on-year revenue growth of 26.3%, beating analysts’ expectations by 2%, and Tyson Foods reported revenues up 1.6%, topping estimates by 1%. Freshpet traded up 13.3% following the results while Tyson Foods was also up 7.6%.
Read our full analysis of Freshpet’s results here and Tyson Foods’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 2.5% on average over the last month. Mission Produce’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $13.21).
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