Mission Produce, Inc. (NASDAQ: AVO) released its quarterly earnings results on Thursday, revealing an earnings per share (EPS) of $0.22. This figure fell short of the consensus estimate of $0.23 by $0.01, according to FiscalAI. The company reported revenue of $319 million for the quarter, surpassing analysts’ expectations of $301.6 million. Despite this positive revenue report, Mission Produce experienced a year-over-year revenue decline of 10%.
The company’s financial metrics also reflected challenges, with a net margin of 2.71% and a return on equity of 8.29%. In the same quarter last year, Mission Produce had reported an EPS of $0.28.
Market Response and Stock Performance
Following the earnings announcement, Mission Produce’s stock opened at $13.20 on Friday, reflecting a slight increase of 0.5%. The stock has seen fluctuations, with a fifty-two week low of $9.56 and a high of $15.25. Currently, the company has a market capitalization of $932.18 million, a price-to-earnings (P/E) ratio of 25.39, and a beta of 0.58.
Mission Produce maintains a debt-to-equity ratio of 0.25, a quick ratio of 1.30, and a current ratio of 2.04. Analyzing the company’s moving averages, the 50-day simple moving average stands at $12.05, while the 200-day average is $12.15.
Institutional Trading and Analyst Ratings
Recent trading activity indicates increased interest from institutional investors. Quarry LP acquired a new stake in Mission Produce valued at $29,000 during the third quarter. Tower Research Capital LLC significantly increased its holdings by 211.8% in the second quarter and now owns 4,649 shares valued at $54,000. Other notable acquisitions include Virtus Advisers LLC, which invested approximately $95,000, and Brooklyn Investment Group, which expanded its stake by an impressive 11,842.6%, bringing its total to 11,226 shares worth $135,000. Overall, institutional investors control 63.57% of the company’s stock.
On the analyst front, several firms have updated their ratings for Mission Produce. Roth Capital raised its target price from $16.00 to $17.00, maintaining a “buy” rating. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating. Stephens initiated coverage with an “overweight” rating and a $17.00 price target. Currently, two analysts rate the stock as “buy,” and two others suggest a “hold,” leading to a consensus rating of “Moderate Buy” with a target of $17.00, according to MarketBeat.com.
Mission Produce, founded in 1983 and headquartered in Oxnard, California, is a leading global supplier and distributor of fresh avocados. The company operates a vertically integrated supply chain that encompasses sourcing, post-harvest handling, packing, and ripening. With proprietary ripening technologies and robust cold-chain logistics, Mission Produce aims to deliver consistent quality and extended shelf life for its avocado products.
As Mission Produce navigates a challenging market, stakeholders will be keen to see how the company adapts its strategies in the coming quarters.
