Jun. 9 at 2:51 PM
Mission Produce rallied about 8% in morning trading after investors digested its fiscal Q2 2026 earnings report and shifted focus from weak headline results to improved forward guidance. Adjusted EPS of
$0.01 missed estimates of ~
$0.08, while revenue fell 24% year over year to
$290.9M amid record avocado supply and depressed pricing. However, management guided for adjusted EBITDA of
$84M–
$88M in the second half, signaling margin pressures may be easing.
Supportive catalysts included the May 28, 2026 completion of the Calavo Growers acquisition, expected to deliver at least
$25M in annualized cost synergies within 18 months, with early benefits starting in Q4 FY2026. The company also authorized a new
$100M share buyback program on June 3, 2026, replacing its prior plan and reinforcing management’s view that the stock is undervalued near its 52-week low. Recent insider buying of ~220,000 shares over the past three months added further confidence.
$AVO