What happened Mission Produce (NASDAQ: AVO) shareholders lost ground to the market on Tuesday, with shares falling 11% by 11:00 a.m. EDT. The slump was due to some disappointing news in the avocado producer's latest earnings report. So what Mission Produce just reported that sales rose 4% year over year to $247 million in the period that ended in late July. The company also noted only a modest 2% increase in average selling prices, while most investors were looking for a better balance between rising volumes and increased prices. Gross profit margin dropped as well. Image source: Getty Images. Executives in a press release explained the shortfall by noting production delays in Mexico that had hurt overall supply and pricing. But Mission Produce's larger sourcing footprint helped minimize the impact. "Our team did an excellent job navigating this complex period," CEO Steve Barnard said. Now what Barnard and his team changed their tune slightly on the second half of the year, with sales volumes and adjusted earnings each receiving downgrades thanks in part to smaller individual fruits being harvested in Mexico today. The company is confident that its wider sourcing model and vertical integration will allow it to continue posting stronger results over the long term. That prediction helps explain why the stock is still outpacing the market so far this year. However, volatility around farming yields, supply, and pricing will pressure earnings through the rest of 2021. 10 stocks we like better than Mission Produce, Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Mission Produce, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source