Mission Produce Q2 Revenue Plunges 24% on Lower Avocado Prices, Misses EPS Estimates
AVO is trading near its 52-week low of $10.07 (5.2% below the low).
Summary
Mission Produce reported a 24% year-over-year decline in Q2 revenue to $290.9 million, primarily driven by a 36% drop in per-unit avocado sales prices, despite higher volumes. The company also missed adjusted EPS estimates, reporting $0.01 against an expected $0.06, and posted a net loss of $7.2 million. This negative financial performance follows the recent completion of its significant acquisition of Calavo Growers on May 29th, which was expected to bolster its market position. Management expects Q3 adjusted EBITDA of $28-$32 million, including a partial contribution from Calavo, and authorized a $100 million share buyback program.
At the time of this announcement, AVO was trading at $9.55 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $893.5M. The 52-week trading range was $10.07 to $15.53. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.