AVO

Mission Produce, Inc. AVO is slated to report third-quarter fiscal 2026 results on Sept. 8, after market close. The company is likely to report top-and bottom-lines decrease when it posts the quarterly results.For revenues, the Zacks Consensus Estimate is pegged at $333.5 million, implying a drop of 6.8% from the year-ago quarter. The consensus estimate for the company’s earnings is pegged at 11 cents per share, which reflects a decline of almost 58% from the year-ago quarter’s figure. The consensus mark has increased 57.1% in the past seven days. In the last reported quarter, the company delivered a negative earnings surprise of 85.7%. Its earnings beat the Zacks Consensus Estimate by 30.1%, on average, in the trailing four quarters. Mission Produce’s quarterly results are likely to face headwinds, primarily due to an unusually high supply of Mexican avocados that pushed prices significantly lower and pressured margins. The company also faced a mismatch between fruit availability and customer demand, which led to higher sourcing costs for in-demand sizes and lower prices for excess sizes.In addition, Mission Produce had to rely more heavily on third-party packing services as its Mexican packing capacity was stretched, further affecting profitability. The company’s International Farming business was also impacted by lower blueberry packing volumes, weaker yields from newer blueberry acreage and investments in mango production that did not deliver the expected yield improvement.Additionally, the Blueberries segment faces lower volumes due to accelerated harvest timing and unfavorable weather conditions. Lower yields per hectare have been driving higher production costs, while reduced blueberry volumes are likely to have negatively impacted packhouse utilization in the International Farming segment. Also, potential weather disruptions associated with El Nino could create production risks. Collectively, these factors are expected to hurt AVO’s results in third-quarter fiscal 2026.On a positive note, Mission Produce has been benefiting from a vertically integrated model, durable avocado demand and an expanded platform following the completed Calavo acquisition. Higher volumes continue to support category growth, while Calavo integration adds North American packing capacity, supply flexibility and prepared foods exposure. Peru production is expected to reach record exportable volumes. Such factors are likely to have offered some cushion to the company’s performance in the to-be-reported quarter. Mission Produce, Inc. price-eps-surprise | Mission Produce, Inc. Quote Our proven model predicts an earnings beat for Mission Produce this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Mission Produce currently has an Earnings ESP of +33.33% and a Zacks Rank of 3. Mission Produce has a forward 12-month price-to-earnings ratio of 17.35X, higher than the Agriculture - Operations industry’s average of 15.76X. The stock is trading lower than its median of 21.37X. Image Source: Zacks Investment Research The recent market movements show that AVO’s shares have gained 20.2% in the past three months compared with the industry's 7.3% growth. Here are some other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.Sysco SYY currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.17, up 1.7% from the year-ago period. SYY has a trailing four-quarter earnings surprise of 1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which implies an increase of 4.8% from the prior-year quarter.Constellation Brands STZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. The company is likely to register an increase in its top line when it reports second-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for STZ’s quarterly revenues is pegged at $2.6 billion, which indicates a 3.8% rise from the prior-year quarter. The consensus estimate for Constellation Brands’ quarterly earnings per share is pegged at $3.63, remaining in line with the year-ago period. STZ has a trailing four-quarter earnings surprise of 9.6%, on average.Simply Good Foods SMPL currently has an Earnings ESP of +0.02% and a Zacks Rank of 3. The company is likely to register declines in its top and bottom lines when it reports fourth-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for Simply Good Foods’ quarterly revenues is pegged at $328.6 million, which indicates a decrease of 11% from the prior-year quarter.The consensus estimate for Simply Good Foods’ quarterly earnings per share is pegged at 40 cents, down 13% year over year. SMPL has a trailing four-quarter earnings surprise of 9.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mission Produce, Inc. (AVO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report The Simply Good Foods Company (SMPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Limoneira (LMNR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on September 9, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This agribusiness company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +1050%. Revenues are expected to be $49.62 million, up 4.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.56% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Limoneira, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.26%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Limoneira will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Limoneira would post a loss of$0.26 per share when it actually produced a loss of -$0.29, delivering a surprise of -11.54%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Limoneira appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Agriculture - Operations industry, Mission Produce, Inc. (AVO), is soon expected to post earnings of $0.11 per share for the quarter ended July 2026. This estimate indicates a year-over-year change of -57.7%. Revenues for the quarter are expected to be $333.45 million, down 6.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Mission Produce has been revised 3.3% up to the current level. Nevertheless, the company now has an Earnings ESP of +33.33%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Mission Produce will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Limoneira Co (LMNR) : Free Stock Analysis Report Mission Produce, Inc. (AVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mission Produce gets about 85% of revenue from avocados, and a price collapse is impacting sales. A supply glut from Mexico, not weak demand, drove the pricing headwinds, but a recovery in prices is now expected. Mission Produce absorbs price shocks better than headlines suggest, with fiscal Q1 gross margin expanding 190 basis points despite a 30% decline in prices. Seasonality turns in Mission's favor in the second half, with a record Peruvian harvest and management issuing upbeat guidance. Insiders and institutions are buying, including directors, the company's largest shareholder, and elite funds run by billionaires. At 11.9 times forward EV/EBITDA, AVO looks worth about $16.50 a share, roughly 29% above current levels. Interested in more stocks insiders are piling into before the rest of the market catches on? Check out Insider Monkey's coverage of insider buying and hedge fund positioning. Mission Produce (AVO) sources, grows and distributes avocados across North America, Europe, the UK and Asia. Avocados account for roughly 85% of revenue, and that is why the company had a tough fiscal first half: sales fell 20% as avocado prices collapsed. The stock is down about 16% from its April highs. Falling avocado prices are hurting Mission Produce, and the problem traces back to Mexico. The country grew its largest crop in years.  Mexico accounts for about 80% of total avocado imports to the US. Avocado exports to the US jumped 35% year over year in the first four months of the year. The country dominates US avocado supply during the winter and early spring, while the larger California and Peruvian harvests generally do not ramp up until spring. Mission grows its own fruit in Peru and Guatemala, but in Mexico and California it buys from third-party growers, mostly daily at market prices, then packs and delivers it. Mission’s high exposure to Mexican supply impacted its results in recent quarters as prices fell. In Q1 FY2026, the average avocado price fell 30% and revenue dropped 17%. In Q2, ended April, pricing fell another 36% and revenue declined 24%. Volumes were never the problem amid exploding avocado demand — they rose 14% in Q1 and 15% in Q2. Avocado prices are expected to recover amid weather factors in Mexico. Michoacán, which grows more than 70% of the country's avocados, is running drought stress at roughly 125% of the intensity of the 2024 drought, according to commodity analytics firm Helios AI. A similar drought hit Michoacán in 2024, cutting both crop volume and fruit size, and avocado prices spiked the following year. The US Department of Agriculture has flagged the risk too, warning in its March report that an El Niño in the second half of 2026 could bring drier conditions and heat spikes that shrink fruit sizes in Mexico. Prices should also get support from the harvest calendar, which turns in Mission's favor from here. Avocado harvests in Mexico peak from December through March. Production in Peru increases from April through September, while California runs from spring into summer. Mission's Q1 and Q2 are when the Mexican glut showed up in the numbers. These are also the months when the market is extremely dependent on Mexico. Q3 covers May to July and Q4 August to October, which is when Peru and California take over. The improvement is already underway. On the Q2 earnings call in June, CFO Bryan Giles said the Mexican harvest had begun winding down, pricing lifted through the quarter, California growers who had been delaying finally started harvesting, and Mission had been picking its own Peruvian fruit for several weeks. The company expects fiscal Q3 pricing to fall about 15% year over year, compared with declines of 30% for Q1 and 36% in Q2. The pressure is cutting in half. Mission’s second half benefits from its own Peruvian harvest, which management expects to reach a record 120 million to 130 million pounds, up from 105 million last year, with most sales falling in fiscal Q4. Its own fruit carries higher margins and fixed farming costs are spread across more pounds. That’s why management expects adjusted EBITDA of $84 million to $88 million in the second half, implying roughly $56 million in Q4 versus about $42 million a year earlier. Photo by AlphaTradeZone Mission Produce is absorbing the recent price shocks smartly, and the market may be ignoring it. The company buys most of its fruit from third-party growers daily at market rates, so when avocado prices fall, its own input cost falls with them. Q1 showed why this strategy works. Pricing fell 30%, and gross margin still expanded 190 basis points. Adjusted EBITDA rose 5% and Marketing & Distribution segment adjusted EBITDA climbed 33%. However, in April, Mission faced a mismatch between the Mexican fruit sizes available and what customers wanted. The company had to pay higher prices for high-demand sizes and offer discounts on less desirable fruit. That negatively impacted its margins. CFO Giles said the April mismatch was temporary and that the supply alignment improved during late May into June. Mission Produce in May completed its $465 million acquisition of Calavo Growers, an avocado company that also sells tomatoes, papayas and prepared foods like guacamole. The market welcomed the deal announcement in January, and the stock jumped 22%. The optimism did not last. Shares peaked in April and then fell as avocado pricing collapsed. So what does the deal actually solve? Calavo eases one of the pressure points directly. During the Q2 earnings call, CEO John Pawlowski said the company had to use more third-party packing services because the market was flooded with Mexican supply and its own capacity there was stretched. That hurt profitability. Next season it should handle that volume in-house because Calavo brings two Mexican packhouses and takes Mission from two facilities in the country to four. Calavo will also diversify Mission's portfolio. Beyond avocados, it brings guacamole, salsas and dips, plus greenhouse tomatoes and Hawaiian papayas. Calavo's prepared foods business revenue grew 12% year over year. Pawlowski said during the Q2 call that the deal should lift Mission's margins because prepared foods carry a significantly higher margin profile than fresh fruit, with more details coming in September. Two signals I watch closely when assessing a stock’s long-term potential are insider buying and institutional positioning. Both have become more constructive for Mission Produce lately. Board member Bruce Taylor bought about 286,410 shares at $11.27 on June 17 and another 100,000 at $11.28 a few days later, increasing his stake to roughly 6.8 million shares. Director Jay Pack added 40,000 shares at $12.10 on June 30. Both bought within weeks of the fiscal Q2 report that knocked the stock to its lows. Globalharvest Holdings Venture, Mission's largest shareholder, bought roughly 2.4 million shares across July 6, 7 and 9, paying about $32 million at prices between $12.73 and $13.41. Hedge fund filings for Q1 showed 20 funds holding stakes, up from 18 sequentially, with the aggregate dollar value rising as well. Rubric Capital Management had the biggest stake in the company at the end of March with roughly 1.73 million shares, followed by Charles Slotnik's Slotnik Capital, which had more than 3% of its portfolio in the company. Several billionaire-run funds loaded up on the stock. Dmitry Balyasny's Balyasny Asset Management lifted its stake by 1,087%, Cliff Asness's AQR Capital Management by 29% and Israel Englander's Millennium Management by 7%. Renaissance Technologies raised its holding by 45%, Quantinno Capital by 438% and EntryPoint Capital by 193%. Mission Produce (NASDAQ:AVO) currently trades at about 11.9 times forward EV/EBITDA, about 12% below the stock's own five-year average. Mission delivered adjusted EBITDA of $110.8 million in fiscal 2025. Calavo reported $40.8 million in the same period. Applying that 11.9 times multiple to $152 million in fiscal 2027 EBITDA, and subtracting $350 million in term loan debt outstanding after the acquisition and dividing by the 88.3 million shares outstanding gives a fair value of about $16.50 per share, roughly 29% upside over the next 12 months. The target assumes no multiple expansion and excludes the $25 million in Calavo synergies. Even after Calavo’s acquisition, avocados would still account for about 85% of Mission Produce revenue. The acquisition may soften the commodity swings but does not end them. Peru is the fix for a Mexican glut, but it also carries weather risk. The company believes El Niño should not hit fiscal 2026 after two years of investment in tree health, but flagged possible volume changes in both Peru and Mexico in fiscal 2027. Customer concentration is also a risk. The top ten customers made up 67% of fiscal 2025 sales, one at 19% and another at 12%, with no long-term supply contracts. The Mexican glut did real damage, but the cause was seasonal. Mission Produce showed that it can absorb a price collapse, and the Calavo packhouses and product diversification give it more room to handle the next one. Q3 FY2026 results land in September, and a stronger second half sets the company up well heading into next year. While we acknowledge the risk and potential of AVO as an investment, our conviction lies in the belief that some AI  stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVO and that has 10,000% upside potential, check out our report about the cheapest AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

Mission Produce, Inc. AVO has been navigating a highly volatile avocado market, where pricing swings often have a significant impact on financial performance. While lower avocado prices weighed on reported revenues in the second quarter of fiscal 2026, management continues to emphasize that disciplined pricing, strong customer relationships and its diversified sourcing network help protect profitability across market cycles. Investors are now assessing whether pricing trends can become a stronger earnings catalyst as supply conditions normalize.Mission Produce's fiscal second-quarter results highlighted the downside of weaker pricing. Revenues declined 24% year over year to $290.9 million, primarily because average avocado selling prices fell 36% from the unusually high levels seen a year ago amid abundant Mexican supply. Although avocado volumes increased 15%, the sharp decline in pricing more than offset the volume gains. Management noted that an imbalance in fruit sizes further pressured per-unit margins during April, forcing the company to procure higher-priced fruit while discounting slower-moving inventory. However, AVO indicated that these conditions were temporary and have already begun to improve as sourcing shifts from Mexico to California and Peru.Looking ahead, improving pricing dynamics could provide a meaningful boost to Mission Produce's earnings. Management expects third-quarter avocado prices to remain about 15% below the prior-year level, a much smaller decline than experienced in the first half, while forecasting meaningful improvement in per-unit margins as supply-demand conditions normalize. The company's multi-region sourcing model, expanding Peruvian harvest and recently completed Calavo acquisition are expected to enhance pricing flexibility, improve operational efficiency and support stronger profitability through the second half of fiscal 2026, even if avocado prices remain below last year's elevated levels. Corteva, Inc. CTVA and Dole plc DOLE are strengthening profitability through better product mix, disciplined cost control and operational efficiencies despite challenging industry conditions.Corteva's results continue to benefit from disciplined pricing across its seed and crop protection businesses, even as the broader agricultural market faces softer commodity prices. The company has maintained favorable pricing through a combination of premium seed offerings, differentiated crop-protection products and a strong innovation pipeline, helping offset volume pressures in certain markets. While pricing gains have moderated from the unusually strong levels seen in recent years, management expects continued product mix improvements and the adoption of new technologies to support margins. Combined with ongoing cost-saving initiatives, pricing discipline remains an important driver of Corteva's earnings resilience despite a challenging farm economy.Dole has increasingly relied on pricing actions to mitigate inflationary pressures and rising supply-chain costs across its fresh produce portfolio. Although pricing has supported revenue growth in recent quarters, management continues to balance price increases with consumer demand and competitive market conditions. The company expects a more normalized pricing environment going forward as input-cost inflation eases, placing greater emphasis on operational efficiencies, productivity improvements and supply-chain optimization to sustain margins. Dole's diversified product portfolio and global sourcing capabilities should help it navigate pricing volatility while supporting steady profitability. Shares of Mission Produce have lost 9.6% in the last three months against the industry’s rise of 12.2%. Image Source: Zacks Investment Research From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 17.73X, significantly above the industry’s average of 16.03X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 35.44%, while that for fiscal 2027 indicates growth of 66.7%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days. Image Source: Zacks Investment Research AVO stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mission Produce, Inc. (AVO) : Free Stock Analysis Report Dole PLC (DOLE) : Free Stock Analysis Report Corteva, Inc. (CTVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at perishable food stocks, starting with Mission Produce (NASDAQ:AVO). The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements. The 10 perishable food stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 4.6% below. While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results. Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados. Mission Produce reported revenues of $290.9 million, down 23.5% year on year. This print exceeded analysts’ expectations by 13.5%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates. John Pawlowski, President and CEO of Mission, stated, “This quarter was shaped by high volumes, low prices, strong execution by our sales and operations teams, and unfortunately, margin compression concentrated in April. Despite the low-price environment, we maintained manageable margins through most of the quarter until the Mexican supply of core fruit sizes fell out of line with customer demand in the final weeks. Delays in the California and Peru harvests increased sourcing costs to fill the gaps and pressured margins. Importantly, supply conditions have improved, pricing and margins are recovering, and we expect to deliver solid performance in the back half of the year. Mission Produce pulled off the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 34.9% since reporting and currently trades at $13.64. Read our full report on Mission Produce here, it’s free. Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs. Cal-Maine reported revenues of $667 million, down 53% year on year, outperforming analysts’ expectations by 3.8%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA and EPS estimates. The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $84.68. Is now the time to buy Cal-Maine? Access our full analysis of the earnings results here, it’s free. With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter. Vital Farms reported revenues of $187.2 million, up 15.4% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations. Vital Farms delivered the fastest revenue growth but had the weakest full-year guidance update in the group. Interestingly, the stock is up 6% since the results and currently trades at $12.72. Read our full analysis of Vital Farms’s results here. Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers. Pilgrim's Pride reported revenues of $4.53 billion, up 1.6% year on year. This number surpassed analysts’ expectations by 2.6%. More broadly, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates. The stock is down 11.7% since reporting and currently trades at $27.52. Read our full, actionable report on Pilgrim's Pride here, it’s free. Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats. Freshpet reported revenues of $297.6 million, up 13.1% year on year. This result topped analysts’ expectations by 2.2%. It was a very strong quarter as it also logged a beat of analysts’ EPS and adjusted operating income estimates. The stock is down 8.4% since reporting and currently trades at $55.13. Read our full, actionable report on Freshpet here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for Mission Produce, Inc. (AVO). Shares have added about 23.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Mission Produce due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Mission Produce, Inc. before we dive into how investors and analysts have reacted as of late. Mission Produce posted second-quarter fiscal 2026 results, wherein the bottom line missed the Zacks Consensus Estimate, but the top line surpassed the same. Meanwhile, earnings and revenues declined year over year. The company reported adjusted earnings of 1 cent compared with 12 cents in the year-ago quarter and missed the consensus estimate of 5 cents.Results benefited from strong avocado volume growth and solid commercial execution in a low-price environment, which helped support customer demand and expand category consumption. However, profitability was pressured by a sharp decline in avocado pricing and a late-quarter mismatch in supply and demand for core fruit sizes that compressed per-unit margins, particularly in April. The quarter also reflected acquisition-related transaction advisory costs tied to the Calavo deal, while management noted pricing and margin conditions improved exiting the period. Revenues of $290.9 million in second-quarter fiscal 2026 declined 24% year over year but surpassed the consensus estimate of $269 million. The decline was due to a 36% decline in average avocado pricing, partially offset by 15% higher avocado volumes.In second-quarter fiscal 2026, the company’s adjusted EBITDA was $7.1 million, down 62.8% from $19.1 million in second-quarter fiscal 2025. Gross profit of $20.5 million declined 27.8% year over year. Gross margin decreased by 50 basis points year over year to 7.0% of revenues.In the Marketing & Distribution segment, gross profit was adversely affected by historically low avocado prices and a supply-demand imbalance for core fruit sizes during April, which further compressed per-unit margins. Gross profit in the International Farming segment also declined, primarily due to lower volumes of blueberry packing and storage services resulting from reduced harvest yields, as well as higher per-unit mango production costs.SG&A of $21.1 million (excluding transaction advisory costs) was essentially unchanged from the prior-year quarter. Transaction advisory costs totaled $6.4 million in the quarter and consisted mainly of third-party legal, due diligence and other fees related to the Calavo acquisition, which closed on May 28, 2026.Avocado operating metrics: 191.5 million pounds sold (up 15% y/y) at an average sales price of $1.29 per pound (down 35.5% y/y from $2.00). Marketing & Distribution: The segment sales were $277.2 million, down 23.5% from $362.5 million a year ago, reflecting a sharp decline in avocado pricing that more than offset higher shipment volumes. The segment posted an operating loss of $3.8 million (including transaction advisory costs) versus an operating income of $7.6 million in the prior-year quarter. Segment adjusted EBITDA was $7.2 million, a 57.1% decline from $16.8 million last year, mainly due to weaker per-unit gross margins.International Farming: The segment sales were $7.7 million, down 4.9% from $8.1 million a year earlier.The segment recorded an operating loss of $3.9 million compared with an operating loss of $1.3 million last year. Segment adjusted EBITDA was a loss of $1.3 million versus a positive $1.5 million in the year-ago quarter, reflecting a $2.8 million deterioration. Management attributed the weaker performance mainly to higher per-unit mango production costs and lower blueberry packaging and storage service volumes.Blueberries: The segment sales were $11.0 million, down 29.9% from $15.7 million a year ago. The decline was mainly due to lower volume sold, partially offset by a higher average selling price per unit.Segment operating income improved to $0.7 million, up 16.7% from $0.6 million last year. Segment adjusted EBITDA rose to $1.2 million, a 50.0% increase from $0.8 million, driven by the stronger per-unit pricing. That benefit was partly offset by lower per-acre yields, which increased per-unit production costs. Cash and cash equivalents were $33 million as of April 30, 2026 (down from $64.8 million as of Oct. 31, 2025). Net cash used in operating activities totaled $21.0 million for the six months ended April 30, 2026, compared with $13.0 million used in the prior-year period. The higher cash outflow primarily reflected weaker profitability in the current year, partly offset by a smaller working-capital build than last year. Capital expenditures were $22.9 million in the quarter versus $28 million a year earlier. The increase in working capital this year was mainly tied to higher trade receivables, driven by seasonal patterns and the timing of sales in the Marketing & Distribution and Blueberries segments. Inventory also rose, reflecting higher volumes in Marketing & Distribution and the build of growing-crop inventory within the International Farming and Blueberries segments.Mission Produce’s board authorized a new share repurchase program on June 3, 2026, allowing the company to buy back up to $100 million of common stock over the next 36 months. The plan replaces the prior program from September 2023, which was set to expire in September 2026, with about $11.2 million still available. No shares were repurchased under the new program through June 8, 2026. Mission Produce completed its acquisition of Calavo Growers on May 28, 2026. The deal adds Calavo’s fresh produce and value-added prepared foods portfolio, strengthens Mission’s year-round avocado supply position in North America, and expands the company into the prepared foods category with potential upside from cost synergies and SG&A savings. For the third quarter of fiscal 2026, Mission Produce expects avocado industry volumes to increase 5-10% year over year. The company also anticipates exportable avocado production from its owned Peru farms of 120-130 million pounds, up from 105 million pounds in the third quarter of fiscal 2025, with sales of that owned production expected to be weighted toward the fiscal fourth quarter.Management also expects pricing to be down about 15% year over year versus the $1.75 per pound average realized in the third quarter of fiscal 2025, citing higher anticipated volumes across U.S. and international markets.Including the newly acquired Calavo business, Mission Produce guided fiscal third-quarter 2026 adjusted EBITDA to $28-$32 million, reflecting a partial-quarter contribution from Calavo, later-timed Peru farming contribution versus last year and lingering margin-compression impacts from the second quarter that continued at the beginning of the third quarter. For the second half of fiscal 2026, adjusted EBITDA is projected at $84-$88 million, supported by a full quarter of Calavo in the fourth quarter of 2025, stabilizing avocado margin dynamics and improved blueberry volumes on better yields. Synergies from Calavo are expected to begin materializing in the fiscal fourth quarter and build thereafter, with related expenses planned to be added back to adjusted EBITDA and adjusted net income alongside quarterly updates. Full-year fiscal 2026 capital expenditures are expected to be approximately $45 million, including planned spending tied to the legacy Calavo business. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -73.68% due to these changes. Currently, Mission Produce has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Mission Produce has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mission Produce, Inc. (AVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $290.9 million, down 24% from the prior year. Avocado Volume Growth: 15% year-over-year increase. Gross Profit: $20.5 million, compared to $28.4 million in the prior year. Gross Margin: Decreased by 50 basis points to 7% of revenue. Adjusted Net Income: $0.8 million or $0.01 per diluted share, compared to $8.7 million or $0.12 per diluted share in the prior year. Adjusted EBITDA: $7.1 million, compared to $19.1 million in the prior year. Marketing and Distribution Segment Sales: $277.2 million, compared to $362.5 million in the prior year. International Farming Segment Sales: $7.7 million, compared to $8.1 million in the prior year. Blueberry Segment Sales: $11 million, compared to $15.7 million in the prior year. Cash and Cash Equivalents: $33 million as of April 30, 2026. Net Cash Used in Operating Activities: $21 million for the first six months of fiscal 2026. Capital Expenditures: $22.9 million for the six months ended April 30, 2026. Third Quarter Adjusted EBITDA Guidance: Expected in the range of $28 to $32 million. Second Half Adjusted EBITDA Guidance: Expected in the range of $84 million to $88 million. CapEx Guidance: Approximately $45 million for the current fiscal year. Warning! GuruFocus has detected 4 Warning Signs with AVO. Is AVO fairly valued? Test your thesis with our free DCF calculator. Release Date: June 08, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mission Produce Inc (NASDAQ:AVO) achieved a 15% year-over-year growth in avocado volume sold during the second quarter. The company successfully closed the Calavo acquisition earlier than anticipated, which is expected to unlock immediate value for customers and shareholders. Mission Produce Inc (NASDAQ:AVO) is leveraging its multi-region sourcing network, transitioning supply from Mexico to California and Peru, which is a key competitive advantage. US avocado consumption reached new highs during the quarter, with more than 1.6 million new households entering the category. The company expects to realize a minimum of $25 million in annualized cost synergies from the Calavo acquisition within 18 months, with potential for more upside. Mission Produce Inc (NASDAQ:AVO) experienced a 24% decline in revenue compared to the prior year, driven by a 36% decrease in per unit avocado sales prices. Gross profit decreased from $28.4 million to $20.5 million, with gross margin dropping by 50 basis points to 7% of revenue. The company faced margin pressure due to a temporary mismatch in supply and demand of core fruit sizes, leading to higher spot market pricing. Adjusted net income for the quarter was significantly lower at $0.8 million compared to $8.7 million in the prior year period. The international farming segment reported a loss of $1.3 million in adjusted EBITDA, impacted by investments in mango production and lower blueberry packing volumes. Q: Can you help bridge the 3Q adjusted EBITDA guide of $28 million to $32 million to the second-half guide of $84 million to $88 million? How much of that step-up is from your own Peru production versus a full quarter of Calavo versus improved fundamentals for marketing and distribution? A: Bryan Giles, CFO, explained that the year is more backloaded in the international farming segment due to the timing of harvest. The market is different from last year, with prices starting to lift and expected stability through the quarter. The marketing and distribution segment is expected to see strong volume and price stabilization. The addition of Calavo's business also contributes to the expected results. Q: How might a super El Nino impact fruit conditions in key production areas, particularly in Mexico and your own production? A: John Pawlowski, CEO, stated that they are closely monitoring the situation. For 2026, they have not seen significant impacts and feel confident in their crop numbers due to investments in tree health. There might be potential impacts on the 2027 crop, but they are planning accordingly. In Mexico, the impact depends on rainfall, with potential lower crops anticipated next year. Q: What are the first steps or lowest hanging fruit opportunities for growth from the combined entity with Calavo? A: John Pawlowski, CEO, mentioned that the immediate focus is on optimizing combined cost structures, such as distribution networks and redundant SG&A expenses. Longer-term growth opportunities include expanding the guacamole and prepared foods business, leveraging scale to enhance customer relationships, and expanding into new customer bases and markets. Q: How much of the margin impact was due to the sourcing mismatch versus falling outside of the price and volume sweet spot? A: Bryan Giles, CFO, noted that the mismatch in size curves had a significant impact, particularly in April. While margins were below target ranges, the situation improved towards the end of the quarter. John Pawlowski, CEO, added that the combined company's scale will help mitigate such issues in the future. Q: Can you provide an update on the mismatch in supply and demand on fruit sizes and where we stand today? A: Bryan Giles, CFO, reported that alignment has improved significantly. The Mexican harvest season is winding down, and California growers have begun their harvest, which helps balance the supply. The introduction of Peruvian fruit also contributes to a better margin environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Mission Produce Inc. AVO posted second-quarter fiscal 2026 results, wherein the bottom line missed the Zacks Consensus Estimate, but the top line surpassed the same. Meanwhile, earnings and revenues declined year over year.The company reported adjusted earnings of 1 cent compared with 12 cents in the year-ago quarter and missed the consensus estimate of 5 cents.Mission Produce, Inc. Price, Consensus and EPS Surprise Mission Produce, Inc. price-consensus-eps-surprise-chart | Mission Produce, Inc. Quote Results benefited from strong avocado volume growth and solid commercial execution in a low-price environment, which helped support customer demand and expand category consumption. However, profitability was pressured by a sharp decline in avocado pricing and a late-quarter mismatch in supply and demand for core fruit sizes that compressed per-unit margins, particularly in April. The quarter also reflected acquisition-related transaction advisory costs tied to the Calavo deal, while management noted pricing and margin conditions improved exiting the period. Revenues of $290.9 million in second-quarter fiscal 2026 declined 24% year over year but surpassed the consensus estimate of $269 million. The decline was due to a 36% decline in average avocado pricing, partially offset by 15% higher avocado volumes.In second-quarter fiscal 2026, the company’s adjusted EBITDA was $7.1 million, down 62.8% from $19.1 million in second-quarter fiscal 2025. Gross profit of $20.5 million declined 27.8% year over year. Gross margin decreased by 50 basis points year over year to 7.0% of revenues.In the Marketing & Distribution segment, gross profit was adversely affected by historically low avocado prices and a supply-demand imbalance for core fruit sizes during April, which further compressed per-unit margins. Gross profit in the International Farming segment also declined, primarily due to lower volumes of blueberry packing and storage services resulting from reduced harvest yields, as well as higher per-unit mango production costs.SG&A of $21.1 million (excluding transaction advisory costs) was essentially unchanged from the prior-year quarter. Transaction advisory costs totaled $6.4 million in the quarter and consisted mainly of third-party legal, due diligence and other fees related to the Calavo acquisition, which closed on May 28, 2026.Avocado operating metrics: 191.5 million pounds sold (up 15% y/y) at an average sales price of $1.29 per pound (down 35.5% y/y from $2.00). Marketing & Distribution: The segment sales were $277.2 million, down 23.5% from $362.5 million a year ago, reflecting a sharp decline in avocado pricing that more than offset higher shipment volumes. The segment posted an operating loss of $3.8 million (including transaction advisory costs) versus an operating income of $7.6 million in the prior-year quarter. Segment adjusted EBITDA was $7.2 million, a 57.1% decline from $16.8 million last year, mainly due to weaker per-unit gross margins.International Farming: The segment sales were $7.7 million, down 4.9% from $8.1 million a year earlier.The segment recorded an operating loss of $3.9 million compared with an operating loss of $1.3 million last year. Segment adjusted EBITDA was a loss of $1.3 million versus a positive $1.5 million in the year-ago quarter, reflecting a $2.8 million deterioration. Management attributed the weaker performance mainly to higher per-unit mango production costs and lower blueberry packaging and storage service volumes.Blueberries: The segment sales were $11.0 million, down 29.9% from $15.7 million a year ago. The decline was mainly due to lower volume sold, partially offset by a higher average selling price per unit.Segment operating income improved to $0.7 million, up 16.7% from $0.6 million last year. Segment adjusted EBITDA rose to $1.2 million, a 50.0% increase from $0.8 million, driven by the stronger per-unit pricing. That benefit was partly offset by lower per-acre yields, which increased per-unit production costs. Cash and cash equivalents were $33 million as of April 30, 2026 (down from $64.8 million as of Oct. 31, 2025). Net cash used in operating activities totaled $21.0 million for the six months ended April 30, 2026, compared with $13.0 million used in the prior-year period. The higher cash outflow primarily reflected weaker profitability in the current year, partly offset by a smaller working-capital build than last year. Capital expenditures were $22.9 million in the quarter versus $28 million a year earlier. The increase in working capital this year was mainly tied to higher trade receivables, driven by seasonal patterns and the timing of sales in the Marketing & Distribution and Blueberries segments. Inventory also rose, reflecting higher volumes in Marketing & Distribution and the build of growing-crop inventory within the International Farming and Blueberries segments.Mission Produce’s board authorized a new share repurchase program on June 3, 2026, allowing the company to buy back up to $100 million of common stock over the next 36 months. The plan replaces the prior program from September 2023, which was set to expire in September 2026, with about $11.2 million still available. No shares were repurchased under the new program through June 8, 2026. Mission Produce completed its acquisition of Calavo Growers on May 28, 2026. The deal adds Calavo’s fresh produce and value-added prepared foods portfolio, strengthens Mission’s year-round avocado supply position in North America, and expands the company into the prepared foods category with potential upside from cost synergies and SG&A savings. For the third quarter of fiscal 2026, Mission Produce expects avocado industry volumes to increase 5-10% year over year. The company also anticipates exportable avocado production from its owned Peru farms of 120-130 million pounds, up from 105 million pounds in the fiscal third quarter of 2025, with sales of that owned production expected to be weighted toward the fiscal fourth quarter.Management also expects pricing to be down about 15% year over year versus the $1.75 per pound average realized in the third quarter of fiscal 2025, citing higher anticipated volumes across U.S. and international markets.Including the newly acquired Calavo business, Mission Produce guided fiscal third-quarter 2026 adjusted EBITDA to $28-$32 million, reflecting a partial-quarter contribution from Calavo, later-timed Peru farming contribution versus last year and lingering margin-compression impacts from the second quarter that continued at the beginning of the third quarter. For the second half of fiscal 2026, adjusted EBITDA is projected at $84-$88 million, supported by a full quarter of Calavo in the fourth quarter of 2025, stabilizing avocado margin dynamics and improved blueberry volumes on better yields. Synergies from Calavo are expected to begin materializing in the fiscal fourth quarter and build thereafter, with related expenses planned to be added back to adjusted EBITDA and adjusted net income alongside quarterly updates. Full-year fiscal 2026 capital expenditures are expected to be approximately $45 million, including planned spending tied to the legacy Calavo business.Shares of this Zacks Rank #3 (Hold) company have lost 24.8% in the last three months against the industry’s growth of 2.3%. Image Source: Zacks Investment Research The Chef's Warehouse, Inc. CHEF, a specialty food distributor serving restaurants, hotels and hospitality customers, carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.B&G Foods BGS is a branded packaged-food company that manufactures, markets, and distributes a portfolio of shelf-stable and frozen food products. BGS carries a Zacks Rank #2.The Zacks Consensus Estimate for B&G Foods’ current and next financial-year earnings indicates year-over-year growth of 11.8% and 15.8%, respectively. AmbeV S.A. ABEV is a beverage company that produces and distributes beer, draft beer, soft drinks and other beverages across the Americas. ABEV currently has a Zacks Rank #2.The Zacks Consensus Estimate for Ambev’s 2026 sales and earnings implies growth of 19.2% and 16.7%, respectively, from the previous year’s reported numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report B&G Foods, Inc. (BGS) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report Mission Produce, Inc. (AVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Mission Produce, Inc.? Here are five stocks we like better. Mission Produce’s fiscal Q2 was hit by a severe avocado oversupply, especially from Mexico, which pushed prices to multi-year lows and compressed margins despite a 15% increase in avocado volume sold. Revenue fell 24% year over year to $290.9 million, and adjusted EBITDA dropped sharply to $7.1 million. The company closed its Calavo Growers acquisition earlier than expected and expects it to strengthen supply-chain flexibility, expand capacity, and generate at least $25 million in annualized cost synergies within 18 months. Management said meaningful benefits should begin in fiscal Q4 and build through fiscal 2027. Mission’s outlook calls for a stronger second half, with improving avocado margins, higher Peru farm production, and a full-quarter contribution from Calavo later in the year. The company forecast fiscal Q3 adjusted EBITDA of $28 million to $32 million and second-half adjusted EBITDA of $84 million to $88 million. 2 Avocado Stocks Proving the Superfood Can Be a Super Investment Mission Produce (NASDAQ:AVO) said its fiscal second quarter was pressured by an unusually high-supply avocado market, particularly from Mexico, which drove prices to multi-year lows and compressed margins despite higher avocado volumes. President and Chief Executive Officer John Pawlowski, who formally moved into the CEO role following the company’s annual meeting in April, said the quarter was shaped by “the largest Mexican crop in years.” He said Mission’s sales team maintained customer support through the volatile period, even as per-unit margins came under pressure from a temporary mismatch between supply and demand for core fruit sizes. → Samsara Just Answered The AI Question—Is Wall Street Ready To Listen? Is It Time to Take A Bite Of Mission Produce? “Our decision to continue to support our customers in the face of compressing margins was deliberate to help our customers meet heightened demand and facilitate longer term value creation,” Pawlowski said. Chief Financial Officer Bryan Giles said fiscal second-quarter revenue totaled $290.9 million, down 24% from the prior year. The decline was driven by a 36% decrease in per-unit avocado sales prices compared with last year’s peak pricing environment. Mission partially offset that pressure with a 15% increase in avocado volume sold. → IREN's 800MW Bet Flips the AI Power Switch Gross profit declined to $20.5 million from $28.4 million a year earlier, while gross margin fell 50 basis points to 7% of revenue. Giles said the decline was largely tied to a mismatch in the supply and demand of core fruit sizes during a high-supply environment. That mismatch peaked in April, Giles said, forcing Mission to pay higher spot-market prices to fill shortfalls in high-demand sizes while reducing prices to move lower-demand sizes. The situation compounded an already tighter per-unit margin environment caused by low avocado prices. → Tesla’s EV Rebound Leaves Rivian and Lucid Facing a Tougher Investor Test Adjusted net income was $0.8 million, or $0.01 per diluted share, compared with $8.7 million, or $0.12 per diluted share, in the prior-year quarter. Adjusted EBITDA declined to $7.1 million from $19.1 million. Core selling, general and administrative expense was flat compared with the prior-year period, excluding $6.4 million of transaction advisory costs tied to the company’s acquisition of Calavo Growers. In the marketing and distribution segment, sales declined to $277.2 million from $362.5 million a year earlier, reflecting lower avocado prices partially offset by higher volumes. Segment adjusted EBITDA was $7.2 million, compared with $16.8 million in the prior-year period. Pawlowski said the segment delivered 15% year-over-year avocado volume growth, and noted that on a first-half basis, the segment’s gross profit increased approximately 5% from the prior-year period despite second-quarter margin pressure. International farming sales were $7.7 million, compared with $8.1 million a year earlier. Segment adjusted EBITDA was a loss of $1.3 million, compared with income of $1.5 million. Giles attributed the decline to investments in mango production that did not improve yields in the current harvest season and lower blueberry packing volumes after an earlier end to the blueberry harvest. The blueberry segment reported sales of $11 million, down from $15.7 million, primarily due to lower volumes sold, partially offset by higher average per-unit pricing. Segment adjusted EBITDA rose to $1.2 million from $0.8 million, as better pricing more than offset higher per-unit production costs from lower yields on newer acreage. Mission closed its acquisition of Calavo on May 28, earlier than initially planned, and is now operating as one combined company. Pawlowski said the combination should improve Mission’s ability to manage high-volume environments by adding Calavo’s pack houses and expanding the company’s footprint. He said the transaction also gives Mission more flexibility to align supply with demand, including matching fruit size curves to customer programs. Pawlowski described Calavo as strengthening Mission’s position as a reliable year-round source of fresh avocados across North America. Mission continues to expect at least $25 million in annualized cost synergies within 18 months of closing, with what Pawlowski described as “meaningful upside potential.” He said the company has a dedicated integration work group in place and expects savings to come from eliminating redundant operations and SG&A cost structures. Because the deal closed earlier than planned, Mission now expects to begin seeing benefits in the fiscal fourth quarter, with savings ramping into fiscal 2027. Pawlowski also highlighted Calavo’s guacamole and ready-to-eat product lines as a prepared foods opportunity that is adjacent to Mission’s core avocado business. In response to an analyst question, Pawlowski said Mission’s initial focus is to avoid disruption while integrating the two companies. He said early opportunities include optimizing the distribution network and reviewing redundant SG&A and infrastructure costs. Longer term, he pointed to potential growth in prepared foods, foodservice, mangoes and international markets. For the fiscal third quarter, Mission expects avocado industry volumes to increase approximately 5% to 10% from the prior-year period. The company expects pricing to be down about 15% year over year compared with the $1.75 per pound average in the fiscal third quarter of 2025, a smaller decline than it experienced in the first half of the year. Mission expects exportable avocado production from its own farms in Peru to reach all-time highs, ranging from 120 million to 130 million pounds, compared with 105 million pounds in the 2025 harvest season. Giles said sales from Mission’s own production are expected to be weighted toward the fiscal fourth quarter. The company forecast consolidated fiscal third-quarter adjusted EBITDA of $28 million to $32 million, including a partial-quarter contribution from Calavo. For the second half of fiscal 2026, Mission expects consolidated adjusted EBITDA of $84 million to $88 million. Giles said the second-half outlook reflects a full fourth-quarter contribution from Calavo, higher blueberry yields and improving avocado margins. Mission does not expect material synergy realization in the fiscal third quarter, with integration actions becoming more visible in the fourth quarter and accelerating through fiscal 2027. The company also expects fiscal 2026 capital expenditures of approximately $45 million, including modest spending related to Calavo. Pawlowski said the high-volume, low-price environment helped drive category growth, with U.S. avocado consumption reaching new highs during the quarter and increasing by strong double digits versus last year. He said more than 1.6 million new households entered the avocado category. During the question-and-answer session, Pawlowski said more than 50% of new households typically remain in the category over the long term, based on Mission’s experience. He also said Mission is seeing improving household penetration and per-capita consumption in Europe. Giles said supply has begun shifting from Mexico toward California and Peru, allowing Mission to rely more heavily on its multi-region sourcing network. Management said the margin pressures seen in the second quarter have improved meaningfully in recent weeks and that per-unit margins are expected to recover through the back half of the year. “While the second quarter reflected a unique supply environment that pressured near-term margins, it also reinforced the strength of our commercial execution, our customer relationships, and the underlying demand for the category,” Pawlowski said in closing remarks. Mission Produce, Inc is a leading global supplier, packer and distributor of fresh avocados, serving retail, foodservice and industrial customers. The company manages a vertically integrated supply chain that spans sourcing, post-harvest handling, packing and ripening. Through proprietary ripening technologies and cold-chain logistics, Mission Produce delivers consistent quality and extended shelf life for its avocado offerings. Founded in 1983 and headquartered in Oxnard, California, Mission Produce grew from a regional packing operation into a publicly traded company listed on the Nasdaq under the ticker AVO. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mission Produce Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Mission Produce, Inc. (AVO) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -85.71%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.1, delivering a surprise of +42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Mission Produce, which belongs to the Zacks Agriculture - Operations industry, posted revenues of $290.9 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 8.02%. This compares to year-ago revenues of $380.3 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Mission Produce shares have lost about 11.9% since the beginning of the year versus the S&P 500's gain of 7.9%. While Mission Produce has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Mission Produce was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $303.4 million in revenues for the coming quarter and $0.67 on $1.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Agriculture - Operations is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Limoneira (LMNR), another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 9. This agribusiness company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -52.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Limoneira's revenues are expected to be $23 million, down 34.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mission Produce, Inc. (AVO) : Free Stock Analysis Report Limoneira Co (LMNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research