Avocado company Mission Produce (NASDAQ:AVO) will be reporting results tomorrow after the bell. Here’s what to look for.
Mission Produce beat analysts’ revenue expectations by 17% last quarter, reporting revenues of $334.2 million, up 29.2% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Mission Produce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mission Produce’s revenue to be flat year on year at $296.2 million, slowing from the 34.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mission Produce has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 21.7% on average.
Looking at Mission Produce’s peers in the perishable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 9.6%, meeting analysts’ expectations, and Tyson Foods reported flat revenue, falling short of estimates by 0.7%. Vital Farms traded down 6.1% following the results while Tyson Foods was also down 8.3%.
Read our full analysis of Vital Farms’s results here and Tyson Foods’s results here.
There has been positive sentiment among investors in the perishable food segment, with share prices up 3.6% on average over the last month. Mission Produce is up 7.2% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $11.12).
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