Mission Produce Inc (NASDAQ:AVO) stock plummets 12.08% (As on Sep 14, 10:10:56 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 21 and lowered the topline guidance for the full year. During the third quarter, gross profit declined 7% compared to the same period last year to $40.9 million, and gross profit percentage declined 210 basis points to 16.6% of revenue. The declines were due to tighter per-unit margins related to sourcing of Californian and Mexican fruit, which were exacerbated by smaller industry volumes within the California market as well as smaller fruit sizes within the Mexican market. Further, the gross margin was pressured by incremental infrastructure costs related to our new Laredo facility within the Marketing & Distribution segment, which is still in the process of ramping up utilization. The impact was partially offset by higher volume of avocados sold from Company-owned farms within our International Farming segment compared to prior year, which had lower per-unit cost than fruit purchased from third-party growers. Overall, the company has reported adjusted net income for the third quarter of fiscal 2021 of $19.1 million compared to $24.4 million, for the same period last year.
AVO in the third quarter of FY 21 has reported the adjusted earnings per share of 27 cents, missing the analysts’ estimates for the adjusted earnings per share of 31 cents. The company had reported the adjusted revenue growth of 4 percent to $246.8 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $243.2 million. The revenue growth is mainly due to a 2% increase in avocado volume sold and 2% increase in average per-unit avocado sales prices. From a volume perspective, strength in industry supply out of Mexico was largely offset by a smaller California crop. Adjusted EBITDA has decreased to $30.1 million for the third quarter of fiscal 2021, compared to $36.6 million for the same period last year, driven mainly by the lower per-unit margins and higher SG&A costs within the Marketing & Distribution segment, as described above, compared to the prior year period.
The company expects revenue to be in the range of $890 million to $910 million for the fiscal year 2021, down from the previous guidance of $900 million to $920 million. The Street forecasts $908 million.