What To Expect From Mission Produce’s (AVO) Q2 Earnings

Avocado company Mission Produce (NASDAQ:AVO) will be announcing earnings results after market hours. Here’s what to look for.

Mission Produce beat analysts’ revenue expectations by 31.4% last quarter, reporting revenues of $297.6 million, up 34.6% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ earnings 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 decline 11.6% year on year to $231 million, improving from the 16.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mission Produce has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Mission Produce’s peers in the perishable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 38.5%, beating analysts’ expectations by 6.5%, and Pilgrim's Pride reported revenues up 5.8%, falling short of estimates by 1.4%. Vital Farms traded down 12.3% following the results while Pilgrim's Pride was up 2.3%.

Read our full analysis of Vital Farms’s results here and Pilgrim's Pride’s results here.

There has been positive sentiment among investors in the perishable food segment, with share prices up 4.6% on average over the last month. Mission Produce is up 9.8% during the same time and is heading into earnings with an average analyst price target of $14.5 (compared to the current share price of $10.69).

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