MGP Ingredients Q3 sales miss estimates, reaffirms guidance
Overview
US spirits and food ingredient maker's Q3 sales fell 10% yr/yr, missing analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company to change name to Sempreon, Inc. and ticker to CASK on Nov. 2
Outlook
Company reaffirms 2026 sales guidance at $480 mln to $500 mln
Company expects 2026 adjusted EBITDA of $90 mln to $98 mln
Company sees 2026 adjusted basic EPS between $1.50 and $1.80
Result Drivers
LOWER BROWN GOODS & PRIVATE LABEL SALES - Co said Q3 sales fell mainly due to lower brown goods sales in Distilling Solutions and reduced international private label bottled product sales in Branded Spirits
HIGHER INPUT COSTS - Higher waste starch stream costs in Ingredient Solutions and increased costs in Branded Spirits weighed on margins
SELECTIVE BRAND GROWTH - Penelope Bourbon sales rose 12% and mid-priced spirits grew 6%, while Ingredient Solutions sales increased 5%
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $117.91 mln | $119.70 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.39 | $0.32 (5 Analysts) |
Q3 Net Income | $6.90 mln | ||
Q3 Adjusted EBITDA | $21.50 mln | ||
Q3 Operating Income | $12 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the distillers & wineries peer group is "buy"
Wall Street's median 12-month price target for MGP Ingredients, Inc. is $30.00, about 95.8% above its October 27 closing price of $15.32
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Oct 28 - Remy Cointreau beats Q2 sales forecasts, shares slip as recovery doubts linger
Oct 27 - India's Radico Khaitan quarterly profit jumps on premium spirits demand
Oct 28 - France's Remy Cointreau H1 sales rise, helped by Cognac growth in Asia
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)