Shares of Mission Produce Inc. fell more than 5% in the extended session Monday after the avocado producer reported a mixed quarter and tweaked lower its sales guidance for fiscal 2021.

Mission Produce
AVO,
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said it earned $18.4 million, or 26 cents a share, in the fiscal third quarter, compared with $23.4 million, or 37 cents a share, in the year-ago period.

Adjusted for one-time items, the producer earned 27 cents a share.

Revenue rose 4% to $247 million amid a 2% average selling price increase for avocado prices, the company said.

FactSet consensus called for earnings of 30 cents a share on sales of $243 million.

Mission Produce faced volatility in the quarter thanks to Mexico’s “delayed” transitional harvest timing, Chief Executive Steve Barnard said in a statement. “Our team did an excellent job navigating this complex period and produced per-unit margins within the range of our expectations, though toward the lower end.”

Mission Produce’s production in Peru proved to be “a significant advantage” during the quarter, with nearly 45% of the quarter’s U.S. distributed volume being sourced outside Mexico, the company said.

Mission Produce guided for fiscal 2021 net sales in a range between $890 million and $910 million, compared with a previous estimate of between $900 million and $920 million, based on total annual volume between 655 million pounds and 665 million pounds of fruit, which is lower than the company’s prior guidance by about 15 million pounds, it said.

The company also tweaked lower its expectations for full-year adjusted EBITDA to between $88 million and $94 million, pinning the reduction mostly on “the shortfalls we experienced in fiscal third quarter, combined with continued pressure on per-unit gross margins that are extending into the early part of the fiscal fourth quarter, due to challenging supply conditions in Mexico.”

Shares of Mission Produce ended the regular trading day down 0.5%.

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