Food and beverage supplier MGP Ingredients (NASDAQ: MGPI) will be announcing earnings results this Wednesday before market hours. Here’s what investors should know.
MGP Ingredients missed analysts’ revenue expectations last quarter, reporting revenues of $124.4 million, down 14.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is MGP Ingredients a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MGP Ingredients’s revenue to decline 7.9% year on year, improving from the 18.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MGP Ingredients has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at MGP Ingredients’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vita Coco delivered year-on-year revenue growth of 33.7%, beating analysts’ expectations by 6.1%, and Boston Beer reported a revenue decline of 3.2%, in line with consensus estimates. Vita Coco traded down 11% following the results while Boston Beer was up 2.7%.
Read our full analysis of Vita Coco’s results here and Boston Beer’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 3.3% on average over the last month. MGP Ingredients is up 21.4% during the same time and is heading into earnings with an average analyst price target of $26.40 (compared to the current share price of $15.52).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
