Mission Produce (NASDAQ: AVO) reported Q4 EPS of $0.28, $0.29 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $354.4 million versus the consensus estimate of $215.4 million.

Outlook

For the first quarter of fiscal year 2025, the Company is providing the following industry outlooks that will drive performance:

Industry volumes in the fiscal 2025 first quarter are expected to be consistent with the prior year period. While supply from Mexico has been constrained during the early part of the quarter due to fruit maturity and sizing, we expect industry volumes to ramp up as we move to the latter portion of quarter as we expect a larger Mexican harvest season.

Pricing is expected to be higher on a year-over-year basis by approximately 20% compared to the $1.40 per pound average experienced in the first quarter of fiscal 2024, indicative of continued strength in demand.

The blueberries harvest season in Peru will peak during the first quarter. The Company expects to see meaningful volume increases from owned farms resulting from yield improvements and new acreage in production, but the impact on revenue will likely be offset by lower average sales prices resulting from higher overall industry volumes from Peru. Pricing is expected to be approximately 30% lower compared to the first quarter of fiscal 2024, which will negatively impact segment adjusted EBITDA during the quarter as compared to the previous year when weather-related supply constraints led to abnormally high sales prices.

Capital expenditures were lower than expected for fiscal 2024 by approximately $10 million due to the timing of vendor payments associated with packhouse construction in Guatemala and blueberry plant development in Peru, both of which will carryover into fiscal 2025. For fiscal 2025, total capital expenditures inclusive of the 2024 carryover are expected to be between $50 to $55 million. The spend will be allocated primarily to the International Farming and Blueberries segments. Within the International Farming segment, spend will be concentrated in Guatemala for pre-production avocado orchard maintenance and packhouse construction. Within the Blueberries segment, spend will be concentrated on land development and plant cultivation in Peru.

For earnings history and earnings-related data on Mission Produce (AVO) click here.