Food and beverage supplier MGP Ingredients (NASDAQ: MGPI) will be reporting results this Wednesday before the bell. Here’s what to look for.
MGP Ingredients beat analysts’ revenue expectations last quarter, reporting revenues of $138.3 million, down 23.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.
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 13.7% year on year, improving from the 28.7% decrease it recorded in the same quarter last year.
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 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 Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 9.4%, beating analysts’ expectations by 3.7%, and Constellation Brands reported a revenue decline of 11.3%, topping estimates by 2.3%. Keurig Dr Pepper traded up 9.3% following the results while Constellation Brands was also up 8.5%.
Read our full analysis of Keurig Dr Pepper’s results here and Constellation Brands’s results here.
There has been positive sentiment among investors in the beverages, alcohol, and tobacco segment, with share prices up 4.1% on average over the last month. MGP Ingredients is up 10.2% during the same time and is heading into earnings with an average analyst price target of $28.80 (compared to the current share price of $20.28).
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