Mission Produce shares jump after beating expectations on revenue

Investing.com -- Mission Produce Inc (NASDAQ:AVO) shares jumped 6% after hours on Thursday after beating expectations.

Revenue of $221.1 million and adjusted income of 1 cent a share beat expectations for revenue of $218M and a loss of 1 cent a share. Revenue was down 20% from the same time last year after deflationary pressure on avocado sales prices because of a strong harvest in Mexico, it said.

CEO Steve Barnard said the fiscal second quarter performance was “driven by improved sales volumes resulting from a more normal pricing environment versus last year’s record high pricing.”

He cited the avocado producer’s 19% increase in sales volumes year over year, and sequential improvement in both volumes and per-unit margins relative to fiscal first quarter. 

“We are well positioned as we enter the Peruvian season and our owned production comes online in the second half of the fiscal year,” Barnard said.

Mission said the industry continues to expect volumes to be approximately 20% higher in the fiscal 2023 third quarter versus the prior year period.

Shares are up 7.7% so far this year.