Mission Produce Q1 earnings fell short of expectations, but stock price rose due to positive sales outlook

California Oxnard - Mission Produce Inc. (NASDAQ: AVO) reported first-quarter results that missed analyst expectations, but the stock rose 1.6% after the earnings release as investors focused on the company’s sales outlook.

The avocado distributor reported adjusted earnings per share of $0.10, below the consensus estimate of $0.12 by $0.02. Revenue totaled $278.6 million, down 17% year-over-year and below the $319.6 million forecast. The revenue decline was mainly due to a 30% drop in per-unit avocado prices, partially offset by a 14% increase in volume.

The company reported a net loss of $0.7 million, or a diluted loss per share of $0.01, compared to a net profit of $3.9 million in the same period last year. The loss includes $7.0 million in transaction advisory fees related to the pending acquisition of Calavo Growers.

CEO Steve Barnard stated, “We started fiscal 2026 strong, with 14% growth in avocado sales and solid adjusted EBITDA performance, as industry pricing normalized from the high levels experienced over the past year.”

Despite missing expectations, adjusted EBITDA increased 5% from $17.7 million last year to $18.5 million, driven by higher sales and improved unit profit margins in marketing and distribution. Gross margin expanded by 190 basis points to 11.3%.

For the second quarter, Mission Produce expects avocado industry sales to grow 10-15% year-over-year, with prices declining 30-35%. The company also anticipates blueberry revenue to decrease due to earlier harvests and reduced volume from early pruning.

The acquisition of Calavo Growers is valued at approximately $490 million, expected to close in the third fiscal quarter, and is projected to generate at least $25 million in annual synergies.

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