Mission Produce shares up despite dip in Q2 earnings
Oxnard-based Mission Produce, one of the largest avocado distributors in the world, reported its second-quarter earnings on June 8, including an increase in revenue even as net income fell.
Mission recorded revenue of $278.1 million in the second quarter, an 18% increase compared to the same quarter a year ago. The company said this was impacted by average selling price increases of 44%, partially offset by a 19% decrease in avocado volume sold.
But net income fell from $7.4 million, or 10 cents a share, in the second quarter of 2021 to $2.4 million, or 3 cents per share, in the most recent quarter.
Even when adjusted for one-time losses, Mission’s adjusted net income was still below last year’s mark at $2.6 million, or 4 cents per share, compared to $8.7 million, or 12 cents per share.
According to Yahoo Finance, which compiled the average predictions of five analysts who cover Mission, earnings were projected to be around 1 cent per share.
Gross profit also decreased 27% to $19.8 million in the second quarter.
Mission sold fewer avocados in the quarter, at 131.5 million pounds compared to 163 million pounds in the year-ago quarter, but per pound prices increased from $1.42 to $2.04.
Despite the earnings decline, Mission shares were up 3% after hours after closing at $13.92 on June 8 and climbed another 8% during the morning of June 9, to land at around $15 mid-day. For the year, Mission’s stock is down more than 12%.
Mission ended the quarter with cash and cash equivalents worth $21.4 million.