Food and beverage supplier MGP Ingredients (NASDAQ: MGPI) will be reporting earnings tomorrow before market hours. Here’s what to look for.

MGP Ingredients met analysts’ revenue expectations last quarter, reporting revenues of $161.5 million, down 23.7% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss 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 17.8% year on year to $176.7 million, a reversal from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.50 per share.

Analysts covering the company have generally 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 Q4 results, giving us a hint as to what we can expect. Celsius’s revenues decreased 4.4% year on year, beating analysts’ expectations by 2.7%, and Coca-Cola reported revenues up 4.2%, topping estimates by 6.5%. Celsius traded up 27.8% following the results while Coca-Cola was also up 6.5%.

Read our full analysis of Celsius’s results here and Coca-Cola’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underperformed, with share prices down 2.4% on average over the last month. MGP Ingredients is down 12.2% during the same time and is heading into earnings with an average analyst price target of $59.83 (compared to the current share price of $32.70).

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