Mission Produce reported worse-than-expected fourth-quarter earnings and revenue
Avocado distributor Mission Produce Inc (NASDAQ:AVO) is down 15% to trade at $12.38 at last glance, after the company's worse-than-expected fourth-quarter results. Adjusted earnings and revenue fell short of expectations, resulting in two analysts slashing their price targets: Stephens to $15 from $20, and J.P. Morgan Securities to $14 from $17, the latter noting it could take Mission "a couple of quarters to move past some cost pressures and supply challenges."
This negative price action has AVO gapping to its lowest level since April. The shares also broke below previous support at the $14.50 level, as well as their 200-day moving average. Year-to-date, the equity is now down 20.3%.
The sharp bear notes today are interesting, because the majority of analysts are bullish toward Mission Produce stock, with four of the five in coverage carrying a "strong buy" rating, and one a tepid "hold." Plus, the 12-month consensus price target of $17.20 is a 36.7% premium to current levels.