By OXNARD, Calif. – Mission Produce, Inc. (NASDAQ:AVO) saw its shares jump 15% after the avocado producer reported fiscal third quarter earnings that handily beat analyst expectations.
The company posted adjusted earnings per share of $0.23, significantly exceeding the $0.03 consensus estimate. Revenue came in at $324 million, also topping the $230.95 million analysts were expecting.
Mission Produce’s strong performance was driven by higher avocado pricing, which offset lower volumes. Average per-unit avocado sales prices increased 36% YoY, more than compensating for a 10% decrease in avocado volume sold.
“We are pleased to report another quarter of strong financial performance, marked by robust third quarter revenues of $324.0 million, an increase of 24% year-over-year and a 49% increase 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 surging 66% to $26.8 million on improved per-unit gross margins.
For Q4, Mission Produce expects industry volumes to be flat to slightly lower compared to last year. Pricing is anticipated to decrease sequentially but remain about 15% higher than the $1.39 per pound average in Q4 2023.
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