Mission Produce, Inc. (NASDAQ:AVO) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a pretty great week for Mission Produce, Inc. (NASDAQ:AVO) shareholders, with its shares surging 11% to US$12.00 in the week since its latest quarterly results. Revenues beat expectations, coming in 23% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Mission Produce

Taking into account the latest results, the current consensus, from the dual analysts covering Mission Produce, is for revenues of US$969.3m in 2024. This implies a small 3.0% reduction in Mission Produce's revenue over the past 12 months. Statutory earnings per share are predicted to bounce 213% to US$0.27. In the lead-up to this report, the analysts had been modelling revenues of US$900.4m and earnings per share (EPS) of US$0.26 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 14% to US$14.00per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.0% by the end of 2024. This indicates a significant reduction from annual growth of 5.4% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.8% per year. It's pretty clear that Mission Produce's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mission Produce's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Mission Produce. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Mission Produce going out as far as 2025, and you can see them free on our platform here.

It might also be worth considering whether Mission Produce's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.