Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of $334.2 million, a 29% increase compared to the same period last year [7][20] - Gross profit increased by $2.8 million to $31.5 million, although gross profit margin decreased by 170 basis points to 9.4% of revenue [20][21] - Adjusted net income for the quarter was $7.1 million or $0.10 per diluted share, compared to $6.7 million or $0.09 per diluted share last year [21] - Adjusted EBITDA was $17.7 million compared to $19.2 million last year, primarily due to lower per unit gross margins [22] Business Line Data and Key Metrics Changes - The Marketing & Distribution segment net sales increased 32% to $295.8 million, driven by avocado pricing and volume dynamics [23] - The International Farming segment saw total sales increase by 59% to $9.2 million, with adjusted EBITDA improving to $1.8 million from negative $0.5 million [24][25] - The Blueberry segment's net sales increased 12% to $36.4 million, driven by a 70% increase in volumes sold, although average per unit selling prices decreased by 33% [25] Market Data and Key Metrics Changes - The company experienced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [8][11] - The dynamics faced in the quarter highlighted the importance of a diversified sourcing strategy, including key growing geographies like Peru and Colombia [13][14] Company Strategy and Development Direction - The company is strategically expanding its blueberry and mango segments to capitalize on growing consumer demand for healthy snacks [9][10] - The focus on operational efficiency and capital allocation aims to strengthen the long-term cost structure and enhance financial performance [12][17] - The company is committed to navigating market dynamics and delivering long-term value to shareholders through a diversified business model [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall industry harvest out of Mexico is unlikely to be as large as initially expected, which may impact supply [40] - The company anticipates that working capital strains typically seen in the first half of the fiscal year will unwind in the second half as they transition to harvesting their own fruit [45][48] - Future avocado pricing is expected to be higher year-over-year, indicative of continued strength in demand [32] Other Important Information - Cash and cash equivalents were $40.1 million as of January 31, 2025, with capital expenditures of $14.8 million for the quarter [27][30] - The projected CapEx budget for fiscal 2025 remains unchanged at $50 million to $55 million, reflecting ongoing investments in farming and infrastructure [30] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers? - Management indicated that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more inventory directly in the near future [38][41] Question: What is the visibility on working capital unwinding? - Management stated that working capital strains are normal for the first half of the fiscal year and typically unwind in the second half, with expectations for improvement as they transition to harvesting their own fruit [45][48] Question: Have you observed any changes in supplier behavior regarding tariffs? - Management noted that there was more supplier movement and conversations leading up to the March tariff announcement, but overall supply remained consistent and they were able to meet customer requirements [52][53]

分组1 - Mission Produce, Inc. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, and showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of 900% [1] - The company achieved revenues of $334.2 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 18.93%, compared to $258.7 million in the same quarter last year [2] - Over the last four quarters, Mission Produce has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - Despite the strong earnings report, Mission Produce shares have declined approximately 16.8% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.02 on revenues of $237 million, and $0.42 on $1.06 billion in revenues for the current fiscal year [7] - The Agriculture - Operations industry, to which Mission Produce belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of $334.2 million, a 29% increase compared to the same period last year [5][13] - Gross profit increased by $2.8 million to $31.5 million, although gross profit margin decreased by 170 basis points to 9.4% of revenue [13][15] - Adjusted net income for the quarter was $7.1 million or $0.10 per diluted share, compared to $6.7 million or $0.09 per diluted share last year [15] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales increased 32% to $295.8 million, driven by a 25% increase in per unit avocado selling prices and a 5% increase in avocado volume sold [5][16] - The International Farming segment sales increased 59% to $9.2 million, with adjusted EBITDA improving to $1.8 million from a loss of $0.5 million in the prior year [17] - The blueberry segment saw a 12% increase in revenue to $36.4 million, driven by a 70% increase in volumes sold, although average per unit selling prices decreased by 33% [18] Market Data and Key Metrics Changes - The company faced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [5][8] - The company expects industry volumes in the second quarter of fiscal 2025 to be consistent with the prior year, with pricing expected to be higher by approximately 5% [20] Company Strategy and Development Direction - The company is strategically diversifying its sourcing footprint to include key growing regions such as Peru, Colombia, and Guatemala to ensure reliable year-round supply [9][10] - The company is expanding its blueberry and mango segments, investing in new plantings and premium varietals to capitalize on growing consumer demand for healthy snacks [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply challenges and highlighted the importance of their diversified business model [9][11] - The company remains optimistic about future opportunities and is focused on operational excellence and prudent capital allocation [11][12] Other Important Information - Cash and cash equivalents were $40.1 million as of January 31, 2025, with capital expenditures of $14.8 million for the quarter [19] - The company anticipates a normal seasonal unwinding of working capital strains in the second half of the fiscal year [31][32] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers? - Management noted that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more direct inventory soon [24][25][26] Question: What is the visibility on unwinding working capital? - Management indicated that working capital strains are normal for the first half of the fiscal year and expect to unwind in the second half as they transition to harvesting their own fruit [31][32] Question: Have you observed changes in supplier behavior due to tariffs? - Management observed more supplier conversations leading up to the March tariff announcement, but overall supply remained consistent and they were able to meet customer requirements [34][35]

Financial Performance - Total revenue for Q1 fiscal 2025 increased by $75.5 million or 29% to $334.2 million compared to the same period last year, driven by a 25% increase in average per-unit avocado selling prices and a 5% increase in avocado volumes sold [4]. - Net income for Q1 fiscal 2025 was $3.9 million, or $0.05 per diluted share, compared to breakeven for the same period last year, attributed to lower interest rates and increased equity income [7]. - Adjusted net income for Q1 fiscal 2025 was $7.1 million, or $0.10 per diluted share, compared to $6.7 million, or $0.09 per diluted share, for the same period last year [8]. - Adjusted EBITDA for Q1 fiscal 2025 decreased by 8% to $17.7 million, compared to $19.2 million in the prior year, primarily due to lower per-unit gross margins on fruit sold [8]. - The company reported a net income of $6.2 million for Q1 2025, significantly higher than $2.0 million in Q1 2024 [43]. - Adjusted EBITDA for the three months ended January 31, 2025, was $17.7 million, down from $19.2 million in the same period of 2024, a decrease of 7.8% [43]. Sales and Revenue Growth - Marketing & Distribution segment net sales increased by $71.2 million or 32% to $295.8 million for Q1, driven by avocado pricing and volume dynamics [9]. - International Farming segment sales increased by $3.4 million or 59% to $9.2 million, primarily due to higher blueberry packing service revenue [11]. - Blueberries segment net sales increased by 12% to $36.4 million for Q1, driven by volume growth despite lower selling prices [13]. - Total segment sales increased to $341.4 million in Q1 2025 from $262.9 million in Q1 2024, marking a 30% growth year-over-year [48]. - Avocado sales reached $279.2 million in Q1 2025, up from $212.3 million in Q1 2024, reflecting a 31.5% increase [50]. - The average sales price per pound of avocados rose to $1.75 in Q1 2025, compared to $1.40 in Q1 2024, indicating a 25% increase [49]. Assets and Liabilities - Total current assets increased to $297.2 million as of January 31, 2025, from $279.0 million as of October 31, 2024 [29]. - Total assets reached $997.8 million as of January 31, 2025, compared to $971.5 million as of October 31, 2024 [29]. - Total liabilities increased to $414.9 million as of January 31, 2025, from $394.4 million as of October 31, 2024 [29]. - Cash and cash equivalents were $40.1 million as of January 31, 2025, down from $58.0 million as of October 31, 2024 [15]. - Cash and cash equivalents decreased to $40.1 million as of January 31, 2025, from $58.0 million as of October 31, 2024 [29]. - The company experienced an increase in accounts payable to $47.6 million as of January 31, 2025, compared to $35.3 million as of October 31, 2024 [29]. Future Outlook - For Q2 fiscal 2025, pricing is expected to be higher by approximately 5% compared to the $1.59 per pound average in Q2 fiscal 2024, indicating continued strength in demand [24]. - Total capital expenditures for fiscal 2025 are expected to remain in the range of $50 to $55 million [24]. - The company plans to continue focusing on market expansion and new product development to drive future growth [30]. Operational Cash Flow - The company reported a net cash used in operating activities of $1.2 million for the three months ended January 31, 2025, compared to net cash provided of $9.5 million in the same period of 2024 [33]. - International Farming adjusted EBITDA improved to $1.8 million in Q1 2025 from a loss of $0.5 million in Q1 2024 [43]. - Marketing and Distribution adjusted EBITDA decreased to $9.7 million in Q1 2025 from $11.0 million in Q1 2024, a decline of 11.8% [43].

Financial Performance - Net sales increased by $75.5 million or 29% to $334.2 million for the three months ended January 31, 2025, compared to $258.7 million in the same period last year, primarily driven by a 25% increase in average per-unit avocado sales prices and a 5% increase in avocado volume sold [82]. - Gross profit rose by $2.8 million or 10% to $31.5 million, with a gross profit margin of 9.4%, down from 11.1% in the prior year, impacted by lower per-unit margins on avocados due to supply challenges [88]. - Total net sales for the three months ended January 31, 2025, were $334.2 million, an increase of $75.5 million or 29% compared to $258.7 million in the same period last year [104]. - Net income for the three months ended January 31, 2025, was $6.2 million, up from $2.0 million in the same period last year, representing a 210% increase [113]. Segment Performance - The Marketing & Distribution segment generated net sales of $295.8 million, up from $224.6 million, while the Blueberries segment saw a revenue increase of $3.9 million or 12% [82]. - Marketing & Distribution segment net sales increased by $71.2 million or 32% to $295.8 million for the three months ended January 31, 2025, driven by avocado pricing and volume increases [106]. - International Farming segment adjusted EBITDA increased by $2.3 million or 460% to $2.3 million for the three months ended January 31, 2025, compared to a loss of $0.5 million in the same period last year [108]. - Blueberries segment net sales increased by $3.9 million or 12% to $36.4 million for the three months ended January 31, 2025, driven by blueberry volume and pricing dynamics [109]. Expenses and Income - Selling, general and administrative expenses increased by $1.5 million or 7% to $22.2 million, primarily due to higher employee-related costs [90]. - Interest expense decreased by $1.1 million or 33% to $2.2 million, attributed to lower average balances on the revolving line of credit and reduced interest rates [92]. - Equity method income increased by $0.4 million or 100% to $0.8 million, primarily due to improved margins on fruit sold at Mr. Avocado [94]. - Other income was $1.5 million, compared to an expense of $1.0 million in the prior year, driven by foreign currency transaction gains from a strengthening U.S. dollar [96]. - The provision for income taxes increased by $1.1 million or 52% to $3.2 million, reflecting higher income before taxes [100]. - The effective tax rate decreased to 34.0% from 51.2% in the prior year, influenced by book losses in certain jurisdictions [100]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2025, were negative at $1.2 million, compared to positive cash flows of $9.5 million in the same period last year, largely due to growth in working capital [113]. - Total purchases of property, plant, and equipment for the three months ended January 31, 2025, were $14.8 million, an increase from $9.9 million in the same period last year [114]. - For fiscal 2025, total capital expenditures are expected to be between $50 million to $55 million, including approximately $10 million carryover from fiscal 2024 [124]. - The capital expenditures will primarily focus on the International Farming and Blueberries segments, with significant investment in Guatemala for avocado orchard maintenance and packhouse construction [124]. Financial Position and Liabilities - As of January 31, 2025, cash and cash equivalents were $40.1 million, down from $58.0 million as of October 31, 2024 [121]. - The company maintained compliance with financial covenants, including a consolidated leverage ratio of not more than 3.5 to 1.00 as of January 31, 2025 [123]. - As of January 31, 2025, undiscounted cash liabilities related to leases were approximately $174.3 million, with $107.4 million allocated for long-term land leases in the International Farming and Blueberries segments [125]. - Remaining maturities on term loans as of January 31, 2025, were $118.2 million [126]. Accounting and Risk Disclosures - There have been no material changes to critical accounting estimates since the Annual Report on Form 10-K for the year ended October 31, 2024 [127]. - No material changes have occurred in the quantitative and qualitative disclosures about market risk since the Annual Report on Form 10-K for the year ended October 31, 2024 [128].

Core Insights - Mission Produce achieved record fiscal first quarter revenue of $334.2 million, a 29% increase year-over-year, driven by higher prices and volumes in the Marketing & Distribution segment [3][9] - The company reported net income of $3.9 million, or $0.05 per diluted share, compared to breakeven in the same period last year, reflecting improved operational performance despite industry challenges [6][9] - The Marketing & Distribution segment saw a 32% increase in net sales to $295.8 million, primarily due to a 25% rise in average per-unit avocado selling prices [10][9] Financial Overview - Total revenue for the first quarter increased by $75.5 million, or 29%, to $334.2 million compared to the same period last year [3][9] - Gross profit rose by $2.8 million to $31.5 million, with a gross profit percentage of 9.4%, down 170 basis points from the previous year [4][9] - Selling, general and administrative expenses increased by $1.5 million, or 7%, to $22.2 million, mainly due to higher employee-related costs [5][9] Segment Performance - The Marketing & Distribution segment's adjusted EBITDA decreased to $9.7 million from $11.0 million due to lower per-unit gross margins on avocados sold [10][9] - The International Farming segment's total sales increased by 59% to $9.2 million, driven by higher blueberry packing service revenue [12][9] - The Blueberries segment reported a 12% increase in net sales to $36.4 million, although adjusted EBITDA decreased by 29% to $6.2 million due to lower selling prices [14][15] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $40.1 million as of January 31, 2025, down from $58.0 million as of October 31, 2024 [16][9] - Net cash used in operating activities was $1.2 million, a decline from cash provided by operating activities of $9.5 million in the same period last year, primarily due to increased working capital [17][9] - Capital expenditures for the quarter were $14.8 million, up from $9.9 million in the prior year, focused on avocado orchard development and blueberry plant cultivation [18][9] Outlook - For the second quarter of fiscal year 2025, industry volumes are expected to be consistent with the prior year, with pricing projected to be approximately 5% higher compared to the same period last year [19][9]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing remains a popular strategy, focusing on fundamental analysis to find undervalued stocks [2] Company Analysis: Mission Produce (AVO) - Mission Produce (AVO) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong interest from investors [3] - AVO has a PEG ratio of 1.24, which is lower than the industry average of 1.37, suggesting it may be undervalued relative to its expected earnings growth [4] - The stock's P/S ratio stands at 0.67, compared to the industry's average of 0.69, reinforcing the notion that AVO is likely undervalued [5] - Overall, AVO's strong earnings outlook and key valuation metrics indicate it is an impressive value stock at the moment [6]

Company Overview - Mission Produce, Inc. (NASDAQ: AVO) is an international, vertically integrated avocado company that operates in a relatively unknown small-cap stock segment [1] - The company benefits from both short-term and long-term tailwinds, particularly due to Mexico being the largest avocado producer worldwide and the U.S. being a significant market for avocados [1] Investment Potential - The article highlights the potential for Mission Produce as a strongly undervalued stock, suggesting that there are investment opportunities that may be overlooked [1] - The author emphasizes a focus on discovering little-known, forgotten, and underrated stocks across various geographies and sectors [1]

Core Viewpoint - Mission Produce, Inc. is set to release its financial results for the fiscal first quarter ended January 31, 2025, on March 10, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast at 5:00 PM Eastern Time on the same day [1] - The conference call can be accessed via phone or through a live audio webcast on the Company's Investor Relations website [2][3] Group 2: Company Overview - Mission Produce is a global leader in the avocado business, also offering mangos and blueberries [4] - The company has been sourcing, producing, and distributing fresh Hass avocados since 1983 and serves customers in over 25 countries [4] - Mission Produce operates four advanced packing facilities in key growing locations, including California, Mexico, and Peru, and has sourcing capabilities in multiple countries [4] - The company's distribution network includes strategically positioned centers across North America, China, Europe, and the UK, providing value-added services [4]

Core Viewpoint - Mission Produce, Inc. (AVO) has experienced a notable decline in stock performance, attributed to various challenges including climate risks and potential margin squeezes due to normalization in avocado prices [1][2][5]. Financial Performance - AVO's stock has decreased by 13.4% over the past three months, underperforming its industry peers and the broader Consumer Staples sector [5][6]. - The current share price of $11.74 reflects a 23% premium over its 52-week low of $9.54, but a 23% discount from its 52-week high of $107.43 [9]. - For fiscal 2024, AVO expects revenue to exceed $320 million, up from $257.9 million in the previous year, with adjusted EBITDA projected to surpass $28 million compared to $17.3 million [17]. Valuation Metrics - AVO is trading at a forward 12-month P/E multiple of 34.24X, significantly higher than the industry average of 13.87X and the S&P 500's average of 22.54X [10]. - Despite the high valuation, it is below its five-year high of 58.58X, indicating potential upside [10]. Growth Potential - AVO has shown a 15.7% increase in the past year, driven by rising avocado demand, expansion in emerging markets, and supply-chain efficiency [13]. - The company's competitive advantage lies in its global sourcing network and integrated operations, which enhance profitability [14][15]. Market Outlook - The Zacks Consensus Estimate indicates a decline in sales and EPS for fiscal 2024, with expected year-over-year declines of 14.5% and 43.2%, respectively, but a slight recovery is anticipated in fiscal 2025 with growth estimates of 4.4% and 2.4% [18]. - Despite recent stock performance concerns, AVO's strong market position and operational execution suggest favorable long-term prospects [20][21].