We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AVO Q4 Earnings Beat, International Farming Sales Soar 97% Y/Y
Read MoreHide Full Article
Key Takeaways
AVO posted Q4 adjusted EPS of 31 cents, beating estimates, even as revenues fell 10% y/y to $319M.
AVO's gross margin rose 180 bps to 17.5%, while adjusted EBITDA climbed 12% on higher farming output.
AVO's International Farming sales jumped 97% and EBITDA surged 211% on higher yields and services.
Mission Produce, Inc. (AVO - Free Report) reported fourth-quarter fiscal 2025 results, with sales decreasing and earnings increasing year over year. Both sales and earnings beat the Zacks consensus estimates.
This Zacks Rank #3 (Hold) company’s shares have risen 4.7% in the past three months against the industry’s 7.7% decline.
AVO Stock's Price Performance
Image Source: Zacks Investment Research
Insight Into AVO’s Quarterly Performance
The company posted adjusted earnings of 31 cents per share, significantly topping the Zacks Consensus Estimate of 19 cents and up 10.7% year over year from 28 cents in the year-ago quarter.
Mission Produce, Inc. Price, Consensus and EPS Surprise
Total revenues decreased 10% year over year to $319 million from $354 million in the prior-year period. However, the top line beat the Zacks Consensus Estimate of $312.3 million. The year-over-year decrease in the top line was mainly due to the decline in the Marketing and Distribution segment, where average per-unit avocado sales prices declined 27%, partially offset by a 13% rise in avocado volumes.
Gross profit was $55.7 million, with the gross margin improving 180 basis points (bps) to 17.5%. The margin improvement primarily reflected lower revenues than last year, stemming from reduced per-unit pricing. Since margins in the Marketing and Distribution segment are largely managed on a per-unit basis, the decline in pricing dynamics contributed to the reported margin expansion.
Selling, general and administrative expenses for the fiscal fourth quarter rose 2% year over year to $27.7 million, mainly resulting from the elevated operational costs with performance-based stock compensation, as well as increased statutory profit-sharing expense from the Peru and Mexico operations.
Adjusted EBITDA rose 12% year over year to $41.4 million from $36.9 million in the previous year period, thanks to higher avocado production in the International Farming segment, along with increased avocado volume in the Marketing and Distribution segment.
AVO’s Q4 Business Segment Results
Marketing & Distribution: Net sales in this segment fell 15% year over year to $271.9 million in the fourth quarter, backed by the avocado pricing and volume dynamics. However, the segment’s adjusted EBITDA was $2.7 million, up 11% from last year, and operating income rose 9% due to higher avocado volumes.
International Farming: Sales in the International Farming segment for the fiscal fourth quarter jumped 97% year over year to $59.6 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 211% year over year to $8.4 million. The operating income rose by $4.7 million, reaching $2.1 million from a loss of $2.5 million in the previous year period.
Blueberries: Net sales in the Blueberries segment jumped 16% year over year to $36.5 million in the fiscal fourth quarter, backed by higher volumes. The segment’s adjusted EBITDA was $4.7 million compared with $8.6 million in the previous-year period. The operating income for this segment was $4.9 million compared with $11.6 last year.
Mission Produce’s Financial Snapshot
AVO ended the quarter with $64.8 million in cash and cash equivalents, $92.8 million in long-term debt (net of current positions), and $587.3 million in shareholders’ equity, excluding non-controlling interests of $32.6 million. As of Oct. 31, 2025, net cash provided by operating activities was $88.6 million.
The capital expenditure was $51.4 million for the year ended Oct. 31, 2025. Investments included avocado orchard development, pre-production orchard upkeep and land improvements, packhouse construction in Guatemala, and pre-production land development, along with blueberry plant cultivation in Peru.
What to Expect From AVO in Future
For the first quarter of fiscal 2026, the company expects avocado volumes to rise 10% year over year, supported by a larger Mexican harvest, though pricing is projected to decline 25% due to higher supply. In blueberries, Peru’s harvest will peak in the quarter, with higher volumes from new acreage and flat to slightly higher pricing, partly offset by cost pressures from lower yields. Fiscal 2026 capital expenditure is expected to be $40 million.
Better-Ranked Stocks to Consider
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Monster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings implies growth of 9.6% and 22.2%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AVO Q4 Earnings Beat, International Farming Sales Soar 97% Y/Y
Key Takeaways
Mission Produce, Inc. (AVO - Free Report) reported fourth-quarter fiscal 2025 results, with sales decreasing and earnings increasing year over year. Both sales and earnings beat the Zacks consensus estimates.
This Zacks Rank #3 (Hold) company’s shares have risen 4.7% in the past three months against the industry’s 7.7% decline.
AVO Stock's Price Performance
Image Source: Zacks Investment Research
Insight Into AVO’s Quarterly Performance
The company posted adjusted earnings of 31 cents per share, significantly topping the Zacks Consensus Estimate of 19 cents and up 10.7% year over year from 28 cents 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 decreased 10% year over year to $319 million from $354 million in the prior-year period. However, the top line beat the Zacks Consensus Estimate of $312.3 million. The year-over-year decrease in the top line was mainly due to the decline in the Marketing and Distribution segment, where average per-unit avocado sales prices declined 27%, partially offset by a 13% rise in avocado volumes.
Gross profit was $55.7 million, with the gross margin improving 180 basis points (bps) to 17.5%. The margin improvement primarily reflected lower revenues than last year, stemming from reduced per-unit pricing. Since margins in the Marketing and Distribution segment are largely managed on a per-unit basis, the decline in pricing dynamics contributed to the reported margin expansion.
Selling, general and administrative expenses for the fiscal fourth quarter rose 2% year over year to $27.7 million, mainly resulting from the elevated operational costs with performance-based stock compensation, as well as increased statutory profit-sharing expense from the Peru and Mexico operations.
Adjusted EBITDA rose 12% year over year to $41.4 million from $36.9 million in the previous year period, thanks to higher avocado production in the International Farming segment, along with increased avocado volume in the Marketing and Distribution segment.
AVO’s Q4 Business Segment Results
Marketing & Distribution: Net sales in this segment fell 15% year over year to $271.9 million in the fourth quarter, backed by the avocado pricing and volume dynamics. However, the segment’s adjusted EBITDA was $2.7 million, up 11% from last year, and operating income rose 9% due to higher avocado volumes.
International Farming: Sales in the International Farming segment for the fiscal fourth quarter jumped 97% year over year to $59.6 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 211% year over year to $8.4 million. The operating income rose by $4.7 million, reaching $2.1 million from a loss of $2.5 million in the previous year period.
Blueberries: Net sales in the Blueberries segment jumped 16% year over year to $36.5 million in the fiscal fourth quarter, backed by higher volumes. The segment’s adjusted EBITDA was $4.7 million compared with $8.6 million in the previous-year period. The operating income for this segment was $4.9 million compared with $11.6 last year.
Mission Produce’s Financial Snapshot
AVO ended the quarter with $64.8 million in cash and cash equivalents, $92.8 million in long-term debt (net of current positions), and $587.3 million in shareholders’ equity, excluding non-controlling interests of $32.6 million. As of Oct. 31, 2025, net cash provided by operating activities was $88.6 million.
The capital expenditure was $51.4 million for the year ended Oct. 31, 2025. Investments included avocado orchard development, pre-production orchard upkeep and land improvements, packhouse construction in Guatemala, and pre-production land development, along with blueberry plant cultivation in Peru.
What to Expect From AVO in Future
For the first quarter of fiscal 2026, the company expects avocado volumes to rise 10% year over year, supported by a larger Mexican harvest, though pricing is projected to decline 25% due to higher supply. In blueberries, Peru’s harvest will peak in the quarter, with higher volumes from new acreage and flat to slightly higher pricing, partly offset by cost pressures from lower yields. Fiscal 2026 capital expenditure is expected to be $40 million.
Better-Ranked Stocks to Consider
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Monster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings implies growth of 9.6% and 22.2%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.