MGP Ingredients (NASDAQ:MGPI) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

MGP Ingredients (NASDAQ:MGPI) released its quarterly earnings results on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.07, FiscalAI reports. MGP Ingredients had a negative net margin of 51.12% and a positive return on equity of 6.58%. The business had revenue of $117.91 million for the quarter, compared to the consensus estimate of $119.70 million. During the same period in the previous year, the firm earned $0.85 EPS. The business’s revenue was down 9.9% on a year-over-year basis.

Here are the key takeaways from MGP Ingredients’ conference call:

• Third-quarter results declined year over year: sales fell 10% to $117.9 million, adjusted EBITDA dropped 33% to $21.5 million, and adjusted EPS decreased 54% to $0.39, reflecting pressure across gross margins and lower brown-goods volumes.
• Management reaffirmed full-year 2026 guidance for sales of $480 million–$500 million, adjusted EBITDA of $90 million–$98 million, adjusted EPS of $1.50–$1.80, and free cash flow of $30 million–$35 million, excluding the Penelope earnout.
• Distilling Solutions remained the largest business headwind, with sales down 29% and brown-goods sales down 47% amid excess industry whiskey inventories, weak pricing, and large customers delaying new long-term commitments. The company is responding by expanding premium white goods, private-label, ready-to-drink, and warehouse-services offerings.
• Ingredient Solutions sales grew 5%, led by a 15% increase in specialty wheat protein, while improving plant reliability supports management’s expectation for a stronger fourth quarter. Executives said demand is sufficient for all available production and that customers have been retained despite prior operating disruptions.
• The company reduced total debt by $28.4 million during the quarter, ending with net leverage of 3.6 times, while cost controls—including agency consolidation expected to save more than $3 million annually—helped offset operating pressure. MGP will also rebrand as Sempreon and begin trading under the Nasdaq ticker CASK on November 2.

MGP Ingredients Price Performance

NASDAQ:MGPI traded up $0.15 during trading hours on Friday, reaching $17.36. 43,365 shares of the company traded hands, compared to its average volume of 245,675. The stock has a market cap of $371.85 million, a P/E ratio of -1.49 and a beta of 0.49. The firm’s 50-day moving average is $15.02 and its 200-day moving average is $18.36. MGP Ingredients has a 1-year low of $12.42 and a 1-year high of $26.62. The company has a debt-to-equity ratio of 0.56, a current ratio of 6.91 and a quick ratio of 1.65.

MGP Ingredients Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, November 13th. MGP Ingredients’s dividend payout ratio is -4.12%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Wells Fargo & Company lifted their price objective on MGP Ingredients from $17.00 to $20.00 and gave the company an “overweight” rating in a research note on Thursday. TD Cowen raised their target price on shares of MGP Ingredients from $18.00 to $20.00 and gave the stock a “hold” rating in a research report on Thursday, July 30th. Weiss Ratings downgraded MGP Ingredients from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday. Finally, Roth Capital lowered their target price on shares of MGP Ingredients from $32.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, October 16th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $26.25.

Insider Buying and Selling

In related news, insider Leslie Lux sold 27,731 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $14.40, for a total transaction of $399,326.40. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Paul Lux sold 33,000 shares of MGP Ingredients stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $17.76, for a total value of $586,080.00. Following the completion of the sale, the insider directly owned 550,458 shares of the company’s stock, valued at approximately $9,776,134.08. This represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 31.70% of the company’s stock.

MGP Ingredients Company Profile

MGP Ingredients, Inc (NASDAQ: MGPI) is a producer and marketer of distilled spirits and specialty food and beverage ingredients. The company operates distilleries and processing facilities that manufacture bourbon, rye whiskey, vodka, gin, tequila and other distilled products, as well as grain-based alcohol and related ingredients.

The company serves customers through both its Distilling Solutions and Branded Spirits businesses. Its branded portfolio includes products such as Ezra Brooks, Yellowstone, Daviess County, El Mayor and Everclear, while its distilling operations supply spirits and alcohol to beverage companies and other commercial customers.