Specialty alcohols and renewable fuels distributor Alto Ingredients' Q2 sales miss estimates
Overview
Alto Ingredients Q2 sales fell 8% yr/yr, missing analyst expectations, per LSEG data
Adjusted EBITDA for Q2 was negative, missing analyst expectations, per LSEG data
Company attributes financial challenges to market conditions and operational disruptions
Outlook
Alto Ingredients expects 45Z credit extension to improve earnings profile
Company plans to apply for credits up to $18 mln in two years
Alto Ingredients to increase CO2 utilization at Pekin and Columbia
Result Drivers
OPERATIONAL DISRUPTIONS - Loading dock outage at Pekin partially offset by selling higher-margin ISCC export products into Europe
STRATEGIC DECISIONS - Cold-idling Magic Valley facility due to adverse market factors and acquiring liquid CO2 facility positively impacted Western assets
REGULATORY DEVELOPMENTS - Extension of 45Z credit through 2029 improves earnings profile and offers potential credits for two plants
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $218.40 mln | $223.60 mln (2 Analysts) |
Q2 EPS |
| -$0.15 |
|
Q2 Net Income |
| -$11.30 mln |
|
Q2 Adjusted EBITDA | Miss | -$200,000 | $4.27 mln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the renewable fuels peer group is "buy"
Wall Street's median 12-month price target for Alto Ingredients Inc is $4.00, about 74% above its August 5 closing price of $1.04
Press Release: ID:nGNXbdghH0
