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AVO's Avocado Volumes Surge: Can Strong Growth Momentum Continue?
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Key Takeaways
AVO sold about 253 million pounds of avocados in the fiscal third quarter, up 38% year over year.
U.S. retail avocado volume rose 9%, while Mission Produce's legacy retail share gained about 60 basis points.
Calavo expands AVO's customer reach, packing capacity and fruit access as it targets sustainable growth.
Mission Produce, Inc.’s (AVO - Free Report) avocado business gained strong momentum in the fiscal third quarter, supported by the addition of Calavo and healthy growth across the legacy Mission Produce’s business. The company also benefited from improving supply availability across key origins, allowing it to better match fruit sizes with customer demand and serve programs more efficiently. Management highlighted that greater sourcing flexibility from California and Peru helped improve the operating environment compared with the preceding quarter, while strong consumer demand continued to support the broader avocado category.
During the quarter, Mission Produce sold approximately 253 million pounds of avocados, up 38% year over year. U.S. retail avocado volume increased about 9%, even as the average retail price rose approximately 15% sequentially. U.S. avocado consumption remained above 10 pounds per capita year to date, up 12% from last year, while household penetration improved by roughly 50 basis points. AVO’s legacy U.S. retail market share also increased by approximately 60 basis points year over year.
Looking ahead, continued volume growth will depend on Mission Produce’s ability to convert its expanded sourcing and distribution capabilities into deeper customer relationships without sacrificing unit economics. The Calavo combination broadens customer reach, packing capacity and access to fruit, while AVO’s multi-origin model should provide greater flexibility as supply conditions change. Management remains focused on balancing market-share expansion with commercial discipline, emphasizing that higher volumes must work alongside healthy per-unit margins to support sustainable earnings and cash-flow growth.
Corteva’s Volume Pressures vs. Dole’s Produce Momentum
Corteva, Inc. (CTVA - Free Report) is navigating softer volumes tied to timing and acreage shifts, while Dole plc (DOLE - Free Report) is benefiting from stronger diversified produce demand despite uneven Fresh Fruit trends.
Corteva’s second-quarter volume performance was pressured by seasonal timing and acreage shifts, even as adoption of newer technologies continued to support parts of the portfolio. Overall volume declined 3% year over year, with Crop Protection volume down 2% primarily because of timing shifts in North America. Seed volume fell 3%, reflecting timing effects in North America and Latin America and lower corn acres in North America and EMEA, partly offset by higher soybean and sunflower acres. Still, management highlighted continued adoption of new Crop Protection products and demand for differentiated Seed technologies. Going forward, volume momentum will hinge on seasonal normalization, crop acreage trends and the company’s ability to drive adoption of its newer products.
Dole’s latest quarter showed encouraging volume momentum across parts of its diversified fresh produce portfolio, although performance remained mixed within Fresh Fruit. The Diversified Fresh Produce – Americas & Rest of World segment benefited from higher North American volumes, supported by seasonal timing in cherries and underlying growth in kiwi and avocados. These gains helped segment revenues increase 13.9% year over year, while adjusted EBITDA advanced 33.8%. Fresh Fruit was more uneven, as higher banana volumes in Europe were offset by lower banana volumes in North America and weaker pineapple availability due to adverse weather. Sustaining volume growth will therefore depend on continued strength across diversified produce categories and improved fruit availability in weather-affected products.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have gained 9% in the last three months against the industry’s fall of 2.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 16.89X, above the industry’s average of 14.37X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 17.2%, while that for fiscal 2027 indicates growth of 29.2%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.
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Image: Bigstock
AVO's Avocado Volumes Surge: Can Strong Growth Momentum Continue?
Key Takeaways
Mission Produce, Inc.’s (AVO - Free Report) avocado business gained strong momentum in the fiscal third quarter, supported by the addition of Calavo and healthy growth across the legacy Mission Produce’s business. The company also benefited from improving supply availability across key origins, allowing it to better match fruit sizes with customer demand and serve programs more efficiently. Management highlighted that greater sourcing flexibility from California and Peru helped improve the operating environment compared with the preceding quarter, while strong consumer demand continued to support the broader avocado category.
During the quarter, Mission Produce sold approximately 253 million pounds of avocados, up 38% year over year. U.S. retail avocado volume increased about 9%, even as the average retail price rose approximately 15% sequentially. U.S. avocado consumption remained above 10 pounds per capita year to date, up 12% from last year, while household penetration improved by roughly 50 basis points. AVO’s legacy U.S. retail market share also increased by approximately 60 basis points year over year.
Looking ahead, continued volume growth will depend on Mission Produce’s ability to convert its expanded sourcing and distribution capabilities into deeper customer relationships without sacrificing unit economics. The Calavo combination broadens customer reach, packing capacity and access to fruit, while AVO’s multi-origin model should provide greater flexibility as supply conditions change. Management remains focused on balancing market-share expansion with commercial discipline, emphasizing that higher volumes must work alongside healthy per-unit margins to support sustainable earnings and cash-flow growth.
Corteva’s Volume Pressures vs. Dole’s Produce Momentum
Corteva, Inc. (CTVA - Free Report) is navigating softer volumes tied to timing and acreage shifts, while Dole plc (DOLE - Free Report) is benefiting from stronger diversified produce demand despite uneven Fresh Fruit trends.
Corteva’s second-quarter volume performance was pressured by seasonal timing and acreage shifts, even as adoption of newer technologies continued to support parts of the portfolio. Overall volume declined 3% year over year, with Crop Protection volume down 2% primarily because of timing shifts in North America. Seed volume fell 3%, reflecting timing effects in North America and Latin America and lower corn acres in North America and EMEA, partly offset by higher soybean and sunflower acres. Still, management highlighted continued adoption of new Crop Protection products and demand for differentiated Seed technologies. Going forward, volume momentum will hinge on seasonal normalization, crop acreage trends and the company’s ability to drive adoption of its newer products.
Dole’s latest quarter showed encouraging volume momentum across parts of its diversified fresh produce portfolio, although performance remained mixed within Fresh Fruit. The Diversified Fresh Produce – Americas & Rest of World segment benefited from higher North American volumes, supported by seasonal timing in cherries and underlying growth in kiwi and avocados. These gains helped segment revenues increase 13.9% year over year, while adjusted EBITDA advanced 33.8%. Fresh Fruit was more uneven, as higher banana volumes in Europe were offset by lower banana volumes in North America and weaker pineapple availability due to adverse weather. Sustaining volume growth will therefore depend on continued strength across diversified produce categories and improved fruit availability in weather-affected products.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have gained 9% in the last three months against the industry’s fall of 2.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 16.89X, above the industry’s average of 14.37X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 17.2%, while that for fiscal 2027 indicates growth of 29.2%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.
Image Source: Zacks Investment Research
AVO stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.