OXNARD, California – Mission Produce, Inc. (NASDAQ:AVO) saw its shares rise 15% after the avocado producer reported third-quarter earnings that easily exceeded analyst expectations.
The company posted adjusted earnings per share of $0.23, significantly higher than the consensus estimate of $0.03. Revenue came in at $324 million, also more than the $230.95 million analysts expected.
Mission Produce’s strong performance was driven by higher avocado prices, which offset lower volumes. Average sales prices per unit of avocado increased by 36% year-on-year, which more than offset the 10% decline in avocado volume sold.
“We are pleased to report another quarter of strong financial performance, highlighted by robust third quarter revenues of $324.0 million, up 24% year over year and up 49% in adjusted EBITDA to $31.5 million,” said CEO Steve Barnard. .
The company’s Marketing and Distribution segment was a key driver, with adjusted EBITDA increasing 66% to $26.8 million on improved gross margins per unit.
For the fourth quarter, Mission Produce expects industry volumes to be flat to slightly lower than last year. Prices are expected to decline gradually, but will remain about 15% higher than the average of $1.39 per pound in the fourth quarter of 2023.
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