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Is Mission Produce's Peru Business Ready to Drive Growth?
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Key Takeaways
Mission Produce expects Peru's fiscal 2026 exportable avocado output to reach 120-130 million pounds.
AVO expects fourth-quarter adjusted EBITDA of $52-$55 million, aided by higher Peruvian avocado sales.
Higher yields and expanded distribution support growth, but lower avocado prices pressure profitability.
Mission Produce, Inc. (AVO - Free Report) is strengthening its growth prospects through improving productivity at its vertically integrated farming operations in Peru. The company's focus on farm efficiency, higher yields and an expanding international distribution network is helping it capitalize on growing avocado demand across global markets. With expectations of higher exportable production and a greater concentration of sales in the fourth quarter of fiscal 2026, Peru is emerging as an important contributor to Mission Produce's near-term performance and profitability.
Mission Produce expects exportable avocado production from its owned Peruvian farms to reach 120-130 million pounds in fiscal 2026, compared with 105 million pounds in the prior season. Approximately 53 million pounds had been sold through the third quarter, leaving a substantial portion of the crop for the final quarter. Management highlighted strong farm productivity, supported by improved agricultural practices and favorable growing conditions during much of the season. The company has also expanded its distribution capabilities, particularly in Southern Europe, strengthening its ability to place fruit across international markets. Moreover, a greater contribution from higher-yielding farms in the fiscal fourth quarter is expected to provide additional cost benefits.
The improving production outlook positions Peru as a key driver of Mission Produce's anticipated fiscal fourth-quarter earnings recovery. The company expects adjusted EBITDA of $52-$55 million in the quarter, up from $32.4 million in the fiscal third quarter, supported partly by increased sales of its Peruvian avocado crop. However, pricing pressures remain a concern, as lower average avocado selling prices weighed on International Farming's fiscal third-quarter profitability. While higher volumes, stronger yields and expanded market access provide growth opportunities, the segment's performance will depend on favorable sales returns, effective crop allocation and continued cost discipline.
CTVA & DOLE Are Exploring Growth Opportunities in Latin America
Corteva is positioned to benefit from improving agricultural productivity and growing demand for advanced crop-protection solutions across Latin America, including Peru. Following the separation of the seed business, the company is focusing on strengthening its crop-protection portfolio through differentiated products, biological solutions and operational efficiencies. Rising demand for innovative agricultural technologies and farmers' efforts to improve crop yields present opportunities for long-term growth. However, competitive pricing pressures in Latin America and fluctuations in farm economics remain challenges. Continued product innovation and cost discipline will be important for sustaining growth.
Dole is strengthening its growth prospects through diversified fresh-produce operations, supported by increasing demand for avocados and other high-value produce. The company's Diversified Fresh Produce – Americas & ROW segment delivered solid revenue growth, benefiting from higher volumes in North America, particularly strong demand for avocados and kiwis. Adjusted EBITDA also improved significantly, reflecting better operating performance and benefits from restructuring its berry operations. Dole is investing in farming infrastructure across Latin America and produce-handling capabilities in Europe to support future growth. However, agricultural cost pressures, weather variability and changing market prices remain key considerations for profitability.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have lost 11.6% in the last three months compared with the industry’s decline of 47.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 14.96X, above the industry’s average of 11.68X.
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.
View the Zacks #1 Rank List
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Is Mission Produce's Peru Business Ready to Drive Growth?
Key Takeaways
Mission Produce, Inc. (AVO - Free Report) is strengthening its growth prospects through improving productivity at its vertically integrated farming operations in Peru. The company's focus on farm efficiency, higher yields and an expanding international distribution network is helping it capitalize on growing avocado demand across global markets. With expectations of higher exportable production and a greater concentration of sales in the fourth quarter of fiscal 2026, Peru is emerging as an important contributor to Mission Produce's near-term performance and profitability.
Mission Produce expects exportable avocado production from its owned Peruvian farms to reach 120-130 million pounds in fiscal 2026, compared with 105 million pounds in the prior season. Approximately 53 million pounds had been sold through the third quarter, leaving a substantial portion of the crop for the final quarter. Management highlighted strong farm productivity, supported by improved agricultural practices and favorable growing conditions during much of the season. The company has also expanded its distribution capabilities, particularly in Southern Europe, strengthening its ability to place fruit across international markets. Moreover, a greater contribution from higher-yielding farms in the fiscal fourth quarter is expected to provide additional cost benefits.
The improving production outlook positions Peru as a key driver of Mission Produce's anticipated fiscal fourth-quarter earnings recovery. The company expects adjusted EBITDA of $52-$55 million in the quarter, up from $32.4 million in the fiscal third quarter, supported partly by increased sales of its Peruvian avocado crop. However, pricing pressures remain a concern, as lower average avocado selling prices weighed on International Farming's fiscal third-quarter profitability. While higher volumes, stronger yields and expanded market access provide growth opportunities, the segment's performance will depend on favorable sales returns, effective crop allocation and continued cost discipline.
CTVA & DOLE Are Exploring Growth Opportunities in Latin America
Corteva, Inc.’s (CTVA - Free Report) focus on advanced crop-protection solutions and Dole plc’s (DOLE - Free Report) expanding fresh-produce operations highlight growth opportunities amid evolving agricultural demand and market challenges.
Corteva is positioned to benefit from improving agricultural productivity and growing demand for advanced crop-protection solutions across Latin America, including Peru. Following the separation of the seed business, the company is focusing on strengthening its crop-protection portfolio through differentiated products, biological solutions and operational efficiencies. Rising demand for innovative agricultural technologies and farmers' efforts to improve crop yields present opportunities for long-term growth. However, competitive pricing pressures in Latin America and fluctuations in farm economics remain challenges. Continued product innovation and cost discipline will be important for sustaining growth.
Dole is strengthening its growth prospects through diversified fresh-produce operations, supported by increasing demand for avocados and other high-value produce. The company's Diversified Fresh Produce – Americas & ROW segment delivered solid revenue growth, benefiting from higher volumes in North America, particularly strong demand for avocados and kiwis. Adjusted EBITDA also improved significantly, reflecting better operating performance and benefits from restructuring its berry operations. Dole is investing in farming infrastructure across Latin America and produce-handling capabilities in Europe to support future growth. However, agricultural cost pressures, weather variability and changing market prices remain key considerations for profitability.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have lost 11.6% in the last three months compared with the industry’s decline of 47.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 14.96X, above the industry’s average of 11.68X.
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.