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AVO Q3 Earnings Beat, International Farming Unit Sales Up 79% Y/Y
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Key Takeaways
AVO's Q3 adjusted EPS of $0.26 and revenues of $357.7M beat estimates, reflecting strong performance.
International Farming segment sales surged 79% y/y, with EBITDA up 163% due to higher yields and services.
Despite softer prices, AVO's Q4 outlook is strong on 15% avocado growth and rising blueberry volumes.
Mission Produce, Inc. (AVO - Free Report) posted third-quarter fiscal 2025 results, which reflected higher profits and a sales beat. Both earnings and revenues grew on a year-over-year basis. Quarterly results stemmed from the company’s strong execution and vertically integrated model, ensuring consistent supply and solid financial performance. Despite market volatility, AVO delivered $34 million in operating cash flow in the third quarter and expects further momentum in the fourth quarter.
This Zacks Rank #3 (Hold) company’s shares have risen 11.9% in the past three months compared with the industry’s 5.3% growth.
AVO Stock's Price Performance
Image Source: Zacks Investment Research
An Insight Into AVO’s Quarterly Performance
The company posted adjusted quarterly earnings of 26 cents per share that significantly topped the Zacks Consensus Estimate of 13 cents. Also, the bottom-line figure improved from adjusted earnings of 23 cents reported in the year-ago quarter.
Mission Produce, Inc. Price, Consensus and EPS Surprise
Total revenues increased 10% to $357.7 million and beat the Zacks Consensus Estimate of $329 million. The year-over-year increase in the top line was mainly backed by the Marketing & Distribution segment, where avocado volume grew 10%, which was somewhat offset by a decline in average per-unit avocado sales prices of 5%. The volume and pricing shifts reflected stronger Peruvian production from favorable weather and increased Mexican supply compared to last year’s harvest disruptions.
Gross profit rose 22% year over year to $45.1 million, with margin improving 120 basis points to 12.6%. The growth was driven by the International Farming segment, supported by higher avocado yields at company-owned farms.
Selling, general and administrative expenses for the third quarter jumped 19% year over year to $24.1 million, mainly due to the elevated employee-related costs with incentive and performance-based stock compensation, as well as increased statutory profit sharing in the International Farming segment tied to strong performance. Adjusted EBITDA rose 3% year over year to $1.1 million, thanks to higher avocado production in the International Farming segment.
AVO’s Q3 Business Segment Results
Marketing & Distribution: Net sales in this segment rose 7% to $344.1 million, backed by the avocado pricing and volume dynamics. However, the segment’s adjusted EBITDA was $20 million, down 25.3% from last year, due to normalized per-unit avocado gross margins versus the unusually high levels seen in the prior year.
International Farming: Sales in the International Farming segment for the third quarter jumped 79% year over year to $49 million. The strong results were driven by higher yields from owned avocado orchards and increased third-party packing and cooling services.
Adjusted EBITDA for the segment rose 163% to $12.1 million as compared to $4.6 million reported in the year-ago quarter.
Blueberries: Sales in the Blueberries segment jumped 181% year over year to $4.5 million in the fiscal third quarter, backed by the blueberry pricing and volume dynamics. The segment’s adjusted EBITDA surged 400% to $0.5 million, owing to blueberry pricing and volume dynamics.
Mission Produce’s Financial Snapshot
Mission Produce ended the quarter with $43.7 million of cash, $128.5 million of long-term debt (excluding current maturities) and $568.7 million of shareholders’ equity, excluding non-controlling interest of $31.8 million. As of July 31, 2025, inventory rose 13.4% year over year to $103.4 million.
Net cash used in operating activities was $21.4 million for the nine months ended July 31, 2025.
Capital expenditures were $39.8 million for the nine months ended July 31, 2025, which consisted mainly of developing the avocado orchard, maintaining the pre-production orchard, land improvements, packhouse construction in Guatemala, pre-production land development and blueberry plant cultivation in Peru.
What to Expect From AVO in Q4?
Moving forward, management expects Avocado volumes to rise about 15% year over year in the fourth quarter of fiscal 2025, driven by abundant Peruvian supply and a larger-than-expected Mexican crop due to favorable weather. Exports from Mission Produce’s Peruvian farms are forecasted to be between 105 and 110 million pounds, up from 43 million pounds in fiscal 2024, with 48 million pounds already sold by the end of the third quarter of fiscal 2025.
Average avocado pricing is expected to decline 20-25% versus $1.90 per pound last year, reflecting higher market availability. Peru’s blueberry harvest will also ramp up, boosting volumes from owned farms, though lower prices may temper revenue impact. Total capital expenditures for fiscal 2025 are expected to range between $50 million and $55 million.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings implies growth of 3.1% and 11%, respectively, from the year-ago reported numbers.
The TJX Companies, Inc. (TJX - Free Report) , the leading off-price apparel and home fashion retailer in the United States and worldwide, currently carries a Zacks Rank #2 (Buy). TJX has a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 5.4% and 7%, respectively, from the year-ago reported numbers.
Grocery Outlet Holding Corp. (GO - Free Report) , an extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.
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AVO Q3 Earnings Beat, International Farming Unit Sales Up 79% Y/Y
Key Takeaways
Mission Produce, Inc. (AVO - Free Report) posted third-quarter fiscal 2025 results, which reflected higher profits and a sales beat. Both earnings and revenues grew on a year-over-year basis. Quarterly results stemmed from the company’s strong execution and vertically integrated model, ensuring consistent supply and solid financial performance. Despite market volatility, AVO delivered $34 million in operating cash flow in the third quarter and expects further momentum in the fourth quarter.
This Zacks Rank #3 (Hold) company’s shares have risen 11.9% in the past three months compared with the industry’s 5.3% growth.
AVO Stock's Price Performance
Image Source: Zacks Investment Research
An Insight Into AVO’s Quarterly Performance
The company posted adjusted quarterly earnings of 26 cents per share that significantly topped the Zacks Consensus Estimate of 13 cents. Also, the bottom-line figure improved from adjusted earnings of 23 cents reported in the year-ago quarter.
Mission Produce, Inc. Price, Consensus and EPS Surprise
Mission Produce, Inc. price-consensus-eps-surprise-chart | Mission Produce, Inc. Quote
Total revenues increased 10% to $357.7 million and beat the Zacks Consensus Estimate of $329 million. The year-over-year increase in the top line was mainly backed by the Marketing & Distribution segment, where avocado volume grew 10%, which was somewhat offset by a decline in average per-unit avocado sales prices of 5%. The volume and pricing shifts reflected stronger Peruvian production from favorable weather and increased Mexican supply compared to last year’s harvest disruptions.
Gross profit rose 22% year over year to $45.1 million, with margin improving 120 basis points to 12.6%. The growth was driven by the International Farming segment, supported by higher avocado yields at company-owned farms.
Selling, general and administrative expenses for the third quarter jumped 19% year over year to $24.1 million, mainly due to the elevated employee-related costs with incentive and performance-based stock compensation, as well as increased statutory profit sharing in the International Farming segment tied to strong performance. Adjusted EBITDA rose 3% year over year to $1.1 million, thanks to higher avocado production in the International Farming segment.
AVO’s Q3 Business Segment Results
Marketing & Distribution: Net sales in this segment rose 7% to $344.1 million, backed by the avocado pricing and volume dynamics. However, the segment’s adjusted EBITDA was $20 million, down 25.3% from last year, due to normalized per-unit avocado gross margins versus the unusually high levels seen in the prior year.
International Farming: Sales in the International Farming segment for the third quarter jumped 79% year over year to $49 million. The strong results were driven by higher yields from owned avocado orchards and increased third-party packing and cooling services.
Adjusted EBITDA for the segment rose 163% to $12.1 million as compared to $4.6 million reported in the year-ago quarter.
Blueberries: Sales in the Blueberries segment jumped 181% year over year to $4.5 million in the fiscal third quarter, backed by the blueberry pricing and volume dynamics. The segment’s adjusted EBITDA surged 400% to $0.5 million, owing to blueberry pricing and volume dynamics.
Mission Produce’s Financial Snapshot
Mission Produce ended the quarter with $43.7 million of cash, $128.5 million of long-term debt (excluding current maturities) and $568.7 million of shareholders’ equity, excluding non-controlling interest of $31.8 million. As of July 31, 2025, inventory rose 13.4% year over year to $103.4 million.
Net cash used in operating activities was $21.4 million for the nine months ended July 31, 2025.
Capital expenditures were $39.8 million for the nine months ended July 31, 2025, which consisted mainly of developing the avocado orchard, maintaining the pre-production orchard, land improvements, packhouse construction in Guatemala, pre-production land development and blueberry plant cultivation in Peru.
What to Expect From AVO in Q4?
Moving forward, management expects Avocado volumes to rise about 15% year over year in the fourth quarter of fiscal 2025, driven by abundant Peruvian supply and a larger-than-expected Mexican crop due to favorable weather. Exports from Mission Produce’s Peruvian farms are forecasted to be between 105 and 110 million pounds, up from 43 million pounds in fiscal 2024, with 48 million pounds already sold by the end of the third quarter of fiscal 2025.
Average avocado pricing is expected to decline 20-25% versus $1.90 per pound last year, reflecting higher market availability. Peru’s blueberry harvest will also ramp up, boosting volumes from owned farms, though lower prices may temper revenue impact. Total capital expenditures for fiscal 2025 are expected to range between $50 million and $55 million.
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The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings implies growth of 3.1% and 11%, respectively, from the year-ago reported numbers.
The TJX Companies, Inc. (TJX - Free Report) , the leading off-price apparel and home fashion retailer in the United States and worldwide, currently carries a Zacks Rank #2 (Buy). TJX has a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 5.4% and 7%, respectively, from the year-ago reported numbers.
Grocery Outlet Holding Corp. (GO - Free Report) , an extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.