Food and beverage supplier MGP Ingredients (NASDAQ: MGPI) will be reporting results this Wednesday before market open. Here’s what you need to know.
MGP Ingredients beat analysts’ revenue expectations last quarter, reporting revenues of $106.4 million, down 12.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS and 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 13.9% year on year, improving from the 23.7% 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 rarely misses Wall Street’s revenue estimates.
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. Vita Coco delivered year-on-year revenue growth of 28.1%, beating analysts’ expectations by 3%, and Philip Morris reported revenues up 10.4%, topping estimates by 5.5%. Vita Coco traded down 11.4% following the results while Philip Morris was up 1.6%.
Read our full analysis of Vita Coco’s results here and Philip Morris’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 2.7% on average over the last month. MGP Ingredients is up 7.2% during the same time and is heading into earnings with an average analyst price target of $27.40 (compared to the current share price of $17.95).
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