Overview

• MGP Ingredients Q3 sales fell 19% but beat analyst expectations

• Adjusted EPS for Q3 decreased 34% to $0.85

• Company raises full-year adjusted EBITDA and EPS outlook

Outlook

• MGP Ingredients raises full-year adjusted EBITDA guidance to $110 mln-$115 mln

• Company tightens full-year sales guidance to $525 mln-$535 mln

• MGP Ingredients increases full-year adjusted EPS outlook to $2.60-$2.75

Result Drivers

• BROWN GOODS DECLINE - Sales decrease primarily due to expected declines in brown goods

• PREMIUM PLUS GROWTH - Premium plus brands delivered solid growth, with Penelope Bourbon maintaining strong growth

• INGREDIENT SOLUTIONS SALES INCREASE - Sales rose 9% due to higher wheat protein sales, despite operational challenges

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $38.00, about 37.7% above its October 28 closing price of $23.67

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw3CFH6Ta

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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.)