Food and beverage supplier MGP Ingredients (NASDAQ: MGPI) will be reporting results this Thursday before the bell. Here’s what to look for.
MGP Ingredients beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $121.7 million, down 28.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.
Is MGP Ingredients a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MGP Ingredients’s revenue to decline 26.4% year on year to $140.4 million, a further deceleration from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MGP Ingredients has missed Wall Street’s revenue estimates twice over the last two years.
Looking at MGP Ingredients’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Boston Beer delivered year-on-year revenue growth of 1.5%, meeting analysts’ expectations, and Coca-Cola reported revenues up 2.1%, topping estimates by 0.5%. Boston Beer traded up 6.5% following the results while Coca-Cola was down 1.4%.
Read our full analysis of Boston Beer’s results here and Coca-Cola’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 3.6% on average over the last month. MGP Ingredients is up 4.6% during the same time and is heading into earnings with an average analyst price target of $39 (compared to the current share price of $31.34).
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